The Determination of Impairment Losses Differs Under IFRS Versus GAAP

question 83

Multiple Choice

The determination of impairment losses differs under IFRS versus GAAP in that

• A)only GAAP permits a value-in-use estimate
• B)only IFRS employs a disposal approach as a measure of fair value
• C)only GAAP compares the fair value to cost
• D)only IFRS permits a value-in-use estimate

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Definitions:

General Adaptation Syndrome

is a three-phase model that describes the body's physiological responses to stress: alarm, resistance, and exhaustion.

Alarm Reaction

The initial phase in the body's response to stress, involving the immediate activation of the nervous system.

Resistance

In psychoanalysis, the blocking from consciousness of anxiety-laden material.

Exhaustion

is a state of extreme physical or mental fatigue, often resulting from sustained stress or activity without adequate rest.