Assets from Time to Time Become Impaired

question 110

Essay

Assets from time to time become impaired. GAAP requires companies to review their assets for impairment. This review should take place whenever events or circumstances indicate the carrying value of the asset may not be recoverable. Provide three examples of events or circumstances which may cause a company to review their assets for impairment.

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Definitions:

Pairwise Comparison

A technique used in decision-making and research for evaluating and comparing all pairs in a set of items to determine preferences, rankings, or the significance of differences.

Total Movement

Refers to the complete or aggregate amount of movement, often used in logistics and material handling to describe the flow of goods within a system.

Cycle Time

The total time from the beginning to the end of a process, including processing and waiting times, indicating the speed of production.