Under ASPE, the first step in the two-step impairment test for depreciable assets is to determine whether an assets discounted cash flows exceeds its carrying amount.

Question

Quizplus · Accepted Answer

Under ASPE, the first step in the two-step impairment test for depreciable assets is to compare the asset's carrying amount with its recoverable amount, which is the higher of its fair value less costs to sell and its value in use (not necessarily involving discounted cash flows).

Under ASPE, the First Step in the Two-Step Impairment Test