An impairment loss is equal to the amount by which book value exceeds the fair value of a long-term asset.

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This is true. An impairment loss is recognized when the carrying amount of a long-term asset exceeds its recoverable amount, which is the higher of its fair value less costs of disposal or its value in use. The impairment loss is the amount by which the carrying amount (book value) of the asset exceeds its recoverable amount.

An Impairment Loss Is Equal to the Amount by Which