The core difference between the rational entity impairment model (IFRS) and the cost recovery impairment model (ASPE) is that the IFRS approach waits until circumstances indicate that conditions are very bad before recognizing an impairment. the IFRS approach captures only declines in value, with no later recognition of any recovery. there are many differences; all of the above are true of the IFRS approach as compared to ASPE. the IFRS approach better reflects the economic circumstances underlying the asset’s usefulness to the entity. Practice Question 12The core difference between the rational entity impairment model (IFRS) and the cost recovery impairment model (ASPE) is thatthe IFRS approach waits until circumstances indicate that conditions are very bad before recognizing an impairment.the IFRS approach captures only declines in value, with no later recognition of any recovery.there are many differences; all of the above are true of the IFRS approach as compared to ASPE.the IFRS approach better reflects the economic circumstances underlying the asset's usefulness to the entity.

International Financial Reporting Standards (IFRS): IFRS are a set of international accounting…

The core difference between the rational entity impairment model (IFRS) and the cost recovery impairment model (ASPE) is that the IFRS approach waits until circumstances indicate that conditions are very bad before recognizing an impairment. the IFRS approach captures only declines in value, with no later recognition of any recovery. there are many differences; all of the above are true of the IFRS approach as compared to ASPE. the IFRS approach better reflects the economic circumstances underlying the asset’s usefulness to the entity.

The core difference between the rational entity impairment model (IFRS) and the cost recovery impairment model (ASPE) is that the IFRS approach waits until circumstances indicate that conditions are very bad before recognizing an impairment. the IFRS approach captures only declines in value, with no later recognition of any recovery. there are many differences; all of the above are true of the IFRS approach as compared to ASPE. the IFRS approach better reflects the economic circumstances underlying the asset’s usefulness to the entity.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 12E

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Q21 Which of the following is NOT a step in impairment testing? Select one: a. Sell the asset after if the fair value is greater than the recoverable amount b. Calculate the asset’s carrying amount in the books of the entity c. Calculate the recoverable amount of the asset d. Assess whether there are circumstances that may indicate that the asset should be impaired.
q24 Which of the following is NOT a step in impairment testing? Select one: a. Calculate the asset’s carrying amount in the books of the entity b. Sell the asset after if the fair value is greater than the recoverable amount c. Calculate the recoverable amount of the asset d. Assess whether there are circumstances that may indicate that the asset should be impaired.
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