An annual report of Costco Wholesale Corporation, the large discount company, contained the following statement: “The Company periodically evaluates long-lived assets for impairment when circumstances occur that may indicate the carrying amount of the asset group may not be fully recoverable”. (a) What does the concept of impairment mean in accounting?

An annual report of Costco Wholesale Corporation, the large discount company, contained the following statement: “The Company periodically evaluates long-lived assets for impairment when circumstances occur that may indicate the carrying amount of the asset group may not be fully recoverable”. (a) What does the concept of impairment mean in accounting?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PB: Consider the following situations and determine (1) which type of liability should be recognized...

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An annual report of Costco Wholesale Corporation, the large discount company, contained the following statement:
“The Company periodically evaluates long-lived assets for impairment when circumstances occur that may indicate the carrying amount of the asset group may not be fully recoverable”.

(a) What does the concept of impairment mean in accounting?

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