A firm recognizing an impairment loss must disclose both the asset or asset group impaired and the method used to estimate its fair value.

Question

Quizplus · Accepted Answer

This statement is true. Under the financial reporting standards, a firm must disclose the asset or asset group impaired and the method used to estimate its fair value when recognizing an impairment loss. This information is important for stakeholders to understand the impact of impairment on the company's financial statements.

A Firm Recognizing an Impairment Loss Must Disclose Both the Asset