If an Asset Value Recovers After an Impairment Loss Has

question 119

Multiple Choice

If an asset value recovers after an impairment loss has been recognized for the asset, what amount of restoration of that loss is recognized?

• A) The difference between the original loss and the new value
• B) The difference between the original cost and the new value
• C) The difference between the value recognized at the impairment and the new value
• D) None of the recovered value is recognized

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Definitions:

Heat Flow

Transfer of thermal energy that results when two adjacent masses have different temperatures, especially from depth to Earth’s surface.

Fractures Rocks

Rocks that have been broken or cracked through various geological processes such as stress, pressure, and chemical reactions.

Seismic Shaking

The vibration of the ground during an earthquake, caused by the passage of seismic waves.

Rhythmic Repeating

The occurrence of patterns or sequences that repeat at regular intervals, often observed in natural and artificial phenomena.