What Should an Entity Evaluate When Making an Initial Impairment

question 53

Essay

What should an entity evaluate when making an initial impairment assessment of an intangible asset (other than goodwill)?

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Definitions:

Critical Value

A threshold in hypothesis testing that determines the boundary for rejecting or failing to reject the null hypothesis.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it marks the threshold of statistical significance.

P Value

The probability of obtaining test results at least as extreme as the observed results, assuming that the null hypothesis is correct.

Null Hypothesis

A statement proposing no significant difference or relationship between variables, serving as a default assumption to be tested against.