Under ASPE, to Determine If There Is an Impairment Loss

question 42

Multiple Choice

Under ASPE, to determine if there is an impairment loss, compare the

• A) fair value of the identifiable assets to the book value of the assets.
• B) fair value of the reporting unit to the carrying value of the reporting unit.
• C) imputed current fair value of the assets with the carrying value of the assets.
• D) imputed carrying value of the assets with the fair value of the assets.

---

Definitions:

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities, intended to correct the market outcome by internalizing the costs of the externality.

Marginal Social Cost

The complete expense incurred by society to produce an extra unit of a good or service, encompassing both individual costs and external impacts.

Marginal Social Benefit

Marginal social benefit is the additional gain to society as a whole from an additional unit of a good or service.

Socially Optimal

Refers to a situation where goods or services are produced and consumed at a level that maximizes overall social welfare.