USGAAP and IFRS Distinguish Three Categories of Long-Lived Assets for Purposes

question 144

True/False

U.S.GAAP and IFRS distinguish three categories of long-lived assets for purposes of measuring and recognizing impairment losses.

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Definitions:

Impairment Loss

The amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount.

NCI

An alternative term for non-controlling interest, highlighting the equity in a subsidiary not held by the parent company.

Parent Interest

Refers to the share of equity interest held by the parent company in a subsidiary, reflecting ownership and control.

Non-controlling Interest

A share in the equity and earnings of a subsidiary that are not owned by the parent company, also known as minority interest.