Under IFRS, Impairment Tests Are More Frequent for PPE and Finite-Life

question 31

True/False

Under IFRS, impairment tests are more frequent for PPE and finite-life intangible assets than for indefinite-life intangible assets.

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Definitions:

Interest Payment Dates

Specific dates set in a loan agreement or bond indenture on which interest payments are made to lenders or bondholders.

Operating Lease

A leasing agreement allowing the use of an asset without ownership, typically with shorter terms than the asset's life, and where the lessor retains the risks and benefits of ownership.

Capital Lease

A lease classified as a purchase by the lessee, where the asset is accounted for on the lessee’s balance sheet as an asset.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the interest expense over the life of the bond by applying a constant interest rate to the carrying value of the bond.