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Basic Question 6 of 15
The amount of the loss required to be recognized for an impairment in the value of a long-lived asset should be the excess of the asset's carrying value over the ______.
B. acquisition cost
C. fair value
D. acquisition cost less the estimated future cash flows
A. undiscounted estimated future cash flows
B. acquisition cost
C. fair value
D. acquisition cost less the estimated future cash flows
User Contributed Comments 5
| User | Comment |
|---|---|
| mrushdi | if fair value not available, then discount value of cash flows. |
| Renaud1807 | discounted value of CF!! |
| Vibis | tricky |
| johntan1979 | Answer A is used in recoverability test to determine impairment, not to calculate the loss. |
| quanttrader | fair value if known, otherwise discounted cash flows |
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Learning Outcome Statements
explain and evaluate how impairment and derecognition of property, plant, and equipment and intangible assets affect the financial statements and ratios
CFA® 2025 Level I Curriculum, Volume 2, Module 7.