List four impairment indicators
What will be an ideal response?
Answer: Any four of the following:
• A significant decrease in the market price of a long-lived asset (asset group).
• A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition.
• A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator.
• An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group).
• A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group).
• A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
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A) the reduction in margin that results from having to go to a backup source. B) the margin that would have been generated if the capacity had been used for production. C) the productivity increase generated when the capacity is used for production. D) the sales potential of excess capacity kept in reserve for emergency production.
It is permissible for information to flow in a backtracking or a criss-crossing pattern through an office as long as the employees don't complain about the workflow
Indicate whether the statement is true or false.