When the value of a long-lived asset has been impaired,the organization must write down the asset reflecting the decline in economic benefit of the asset.

Question

Quizplus · Accepted Answer

This statement is true. When the value of a long-lived asset has been impaired, the organization must reduce the carrying value of the asset and reflect the decline in economic benefit of the asset. This is done by recognizing an impairment loss on the income statement and reducing the carrying value of the asset on the balance sheet.

When the Value of a Long-Lived Asset Has Been Impaired,the