Higher cash outflows and/or lower cash inflows expected from an asset are examples of internal sources of information that may indicate that an asset is impaired.

Question

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Higher cash outflows and lower cash inflows are indicators of reduced future economic benefits from an asset, which may lead to impairment. These are internal sources of information that may be used to assess the recoverable amount of an asset.

Higher Cash Outflows And/or Lower Cash Inflows Expected from an Asset