A requirement of GAAP is that companies should review their assets to ensure they are not impaired, especially when a change dictates the book value may not be recoverable.

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GAAP (Generally Accepted Accounting Principles) requires companies to review their assets for impairment to ensure that their carrying amount can be recovered. If circumstances indicate that the book value of an asset may not be recoverable, companies must assess the asset for impairment and, if necessary, write down its value to reflect its fair market value. This ensures that the financial statements present an accurate picture of the company's financial health.

A Requirement of GAAP Is That Companies Should Review Their