Please explain the accounting issues that are related to asset impairment.© BrainMass Inc. brainmass.com March 4, 2021, 7:39 pm ad1c9bdddf
Explain the accounting issues related to asset impairment.
An impairment loss is measured as the amount by which the asset's carrying amount exceeds the higher of the value in use and the net selling price of that asset.
Indications of Impairment [IAS 36.12]
- market value declines
- negative changes in technology, markets, economy, or laws
- increases in market interest rates
- company stock price ...
The solution explains the accounting issues that are related to asset impairment. References are provided.