After Assessing Qualitative Factors to Determine Whether It Is Necessary

question 77

True/False

After assessing qualitative factors to determine whether it is necessary to perform the quantitative impairment test,the firm will proceed with determining fair value if impairment is deemed reasonably possible.

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Definitions:

Retractable

A bond (or preferred shares) with a retractable feature allows the holder to sell the bond (or preferred shares) back to the issuer before maturity at a preset price.

Holdings

Holdings refer to the securities and assets owned by an investor or investment fund.

Sinking Funds

Sinking funds are reserve accounts set aside by an organization for the purpose of repaying debt or replacing assets in the future.

Bond Indentures

Legal documents specifying the terms and conditions under which a bond is issued, including the rights of bondholders and the duties of the issuer.