IFRS Uses a Fair Value Test to Measure Impairment Loss

question 115

Multiple Choice

IFRS uses a fair value test to measure impairment loss. However, IFRS does not use the first-stage recoverability test under U.S. GAAP - comparing the undiscounted cash flow to the carrying amount. As a result, the IFRS test is

• A) not as strict as U.S. GAAP.
• B) more strict than U.S. GAAP.
• C) essentially the same strictness as U.S. GAAP.
• D) None of the above.

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A state of feeling dejected and disheartened, often resulting from persistent failure or inability to achieve goals.