Impairment Tests Are Required for All Investments Except Those Designated

question 66

True/False

Impairment tests are required for all investments except those designated FVTPL.

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Definitions:

FOB

Free On Board (FOB) is an international commerce term used to indicate whether the seller or buyer is responsible for goods damaged or destroyed during shipping, specifying the point at which the risk of loss shifts.

Ownership

The legal right or state of having control over property, assets, or an entity.

Qualifying Assets

Assets that necessitate a substantial period of time to get ready for their intended use or sale, as defined by certain accounting standards.

Investment Properties

Properties (land or a building—or part of a building—or both) held to earn rentals or for capital appreciation, or both, rather than for use in the production or supply of goods or services or for administrative purposes.