An impairment loss must be recognized when... A) The present value of the asset's future cash flows is higher than the a...

Question

Question

An impairment loss must be recognized when...

A) The present value of the asset's future cash flows is higher than the asset's fair value

B) The present value of the asset's future cash flows is lower than the asset's fair value

C) An asset's book value is lower than its fair value

D) An asset's book value is higher than its fair value

business accounting

Answer 1

Answer #1

Option B is the answer

Asset should be impaired when the estimated future cash flows is lower than the carrying value of the asset.

Comment if you face any issues

Thank you

Answer 2

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