The fair value loss impairment model O calculates the impairment loss as the difference between the asset's fair value and its current carrying amount. O requires a separate impairment test. O calculates the impairment loss as the difference between the asset's original cost and its current carrying amount. O is used for all investments that are not accounted for as FV-NI.
The fair value loss impairment model O calculates the impairment loss as the difference between the asset's fair value and its current carrying amount. O requires a separate impairment test. O calculates the impairment loss as the difference between the asset's original cost and its current carrying amount. O is used for all investments that are not accounted for as FV-NI.
Chapter11: Long-term Assets
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Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...
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![The fair value loss impairment model
O calculates the impairment loss as the difference between the asset's fair value and its current carrying amount.
O requires a separate impairment test.
O calculates the impairment loss as the difference between the asset's original cost and its current carrying amount.
O is used for all investments that are not accounted for as FV-NI.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f181ed1-b0b6-413f-85b5-e55bebc35843%2Ff2c177f2-38c2-46bf-9dce-083793c93e9f%2F1aajue_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The fair value loss impairment model
O calculates the impairment loss as the difference between the asset's fair value and its current carrying amount.
O requires a separate impairment test.
O calculates the impairment loss as the difference between the asset's original cost and its current carrying amount.
O is used for all investments that are not accounted for as FV-NI.
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