Accounting for impairment losses:
A)Involves a two-step process to first test for impairment and then record the loss.
B)Applies only to depreciable,operational assets.
C)Applies only to assets with finite lives.

Question

Quizplus · Accepted Answer

Accounting for impairment losses involves a two-step process. The first step is to test for impairment, which can be applied to any asset, whether it has a finite or infinite life, and whether it is depreciable or not. The second step is to record the loss, which applies only to assets that are depreciable or amortizable.

Accounting for Impairment Losses