Which of the Following Statements Regarding International Accounting Standards for the Impairment

question 32

Multiple Choice

Which of the following statements regarding international accounting standards for the impairment of tangible assets is correct?

• A) Impairment losses cannot be subsequently reversed.
• B) Impairment losses can be subsequently reversed to the extent of the amount of the initial impairment loss.
• C) International accounting standards require a two-step test of impairment of a tangible asset.
• D) Accounting for impairments is not necessary since entities are required under international accounting standards to adjust the values of property,plant,and equipment to fair value at the end of each reporting period for which reports are prepared.

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Definitions:

Resource Utilization

The efficient and effective use of resources, such as capital, materials, and labor, to achieve maximum output.

Resource Utilization

The efficient and effective deployment and use of resources, such as capital, materials, and labor, in the production of goods or services.

Work Performance

The assessment of an employee's effectiveness in fulfilling job duties and contributing to organizational goals.

Resource Cost

The expense associated with the acquisition, maintenance, and use of resources such as materials, time, and labor.