An Impairment Loss Can Be Reversed When

question 9

Multiple Choice

An impairment loss can be reversed when

• A)the impairment loss no longer exists or has been reduced and there has been a change in the estimates used to determine the assets recoverable amount.
• B)with the exception of goodwill,all intangible assets carrying values exceed their fair market values.
• C)the intangible assets carrying values exceed their undiscounted future cash flows.
• D)the recoverable amount is determined and compared to the carrying amount.If the recoverable amount is greater than the carrying amount then the impairment loss previously recorded is reversed)

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Definitions:

Performance Opportunity

refers to situations or conditions that allow an individual or organization to perform tasks or activities effectively, enhancing overall performance.

Actual Situation

The real and present condition or state of affairs, without any alterations or embellishments.

Better Than Anticipated

Results or outcomes that surpass the expected or forecasted standards.

Desired Situation

The optimal state or condition that a person, group, or organization aims to achieve in the future.