Impairment occurs when the future cash flows generated for a long-term asset fall below its fair value.
Impairment occurs when the future cash flows generated for a long-term asset fall below its book value (cost minus accumulated depreciation).

Question

Quizplus · Accepted Answer

Impairment occurs when the carrying amount (book value) of an asset exceeds its recoverable amount, not when future cash flows fall below fair value.

Impairment Occurs When the Future Cash Flows Generated for a Long-Term