Testing for impairments of investment securities is a three step process: Measure the impairment loss,Determine where to present it,and assess whether there is a reversal needed in later periods.

Question

Quizplus · Accepted Answer

Testing for impairments of investment securities typically involves identifying if an impairment exists, measuring the impairment loss, and recognizing it in the financial statements. Reversal of impairment is not always applicable, especially for certain types of securities.

Testing for Impairments of Investment Securities Is a Three Step