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Basic Question 9 of 15
Under IFRS, recoverability is based on the comparison between ______ and ______.
II. fair value
III. undiscounted future cash flows
IV. discounted future cash flows
I. carrying value
II. fair value
III. undiscounted future cash flows
IV. discounted future cash flows
User Contributed Comments 7
| User | Comment |
|---|---|
| joywind | I thought that fair value should be more concisely expressed as fair value less cost of disposal |
| johntan1979 | Yes, joywind, I agree with you. The more precise answer would be (fair value - cost to sell) but I suppose II is right since you DO need fair value as part of the equation. |
| quanttrader | sucks we need to know both GAAP and IFRS - wouldn't just one do? |
| schweitzdm | Right though. As a chartered analyst we should be aware of how companies in other countries are doing things though. Especially if you are looking globally for value companies in today's market. |
| Tom0409 | Agree CFA Institute should remove GAAP, it doesn't make sense, why allow LIFO? |
| ashish100 | Because 'Merica thats why. *picture the bald eagle in your head coz this wont allow images |
| kingirm | Perfect summary |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.