Impairment loss Impairment loss represents a decline or decrease in the carrying value of an asset which is more than thecash flows that same asset may generate in future. Impairment loss arises if fair value of asset is less than its recorded value. To choose: The correct option out of four given options.

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Chapter 1, Problem 1.1.5E

To determine

Impairment loss

Impairment loss represents a decline or decrease in the carrying value of an asset which is more than thecash flows that same asset may generate in future. Impairment loss arises if fair value of asset is less than its recorded value.

To choose: The correct option out of four given options.

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