If there is evidence that an impairment loss on loans and receivables has been incurred, the amount of the loss is equal to a.Excess of the principal amount of the loan over its carrying amount. B. Excess of the carrying amount of the loan over the principal amount of the loan. C. Excess of the carrying amount of the loan receivable over the present value of the cash flows related to the loan. D. Excess of the present value of cash flows related to the loan over the carrying amount of the loan receivable.
If there is evidence that an impairment loss on loans and receivables has been incurred, the amount of the loss is equal to a.Excess of the principal amount of the loan over its carrying amount. B. Excess of the carrying amount of the loan over the principal amount of the loan. C. Excess of the carrying amount of the loan receivable over the present value of the cash flows related to the loan. D. Excess of the present value of cash flows related to the loan over the carrying amount of the loan receivable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If there is evidence that an impairment loss on loans and receivables has been incurred, the amount of the loss is equal to
a.Excess of the principal amount of the loan over its carrying amount.
B. Excess of the carrying amount of the loan over the principal amount of the loan.
C. Excess of the carrying amount of the loan receivable over the present value of the cash flows related to the loan.
D. Excess of the present value of cash flows related to the loan over the carrying amount of the loan receivable.
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