A loss due to impairment is recorded when:

Question

Quizplus · Accepted Answer

A loss due to impairment is recorded when an asset's fair value permanently drops below its book value. This means that the asset is no longer worth what it was originally valued at, and the difference between the fair value and book value represents a loss to the company. It is important to recognize and record impairment losses in a timely manner in order to accurately reflect the true value of assets on the balance sheet.

A Loss Due to Impairment Is Recorded When