Firms recognize an impairment loss when the carrying amount of a tangible fixed asset is deemed "not recoverable" as specified by GAAP. GAAP defines a carrying amount as "not recoverable" if

a. it is greater than the sum of the cash flows expected from the asset's use and disposal.
b. it is greater than the sum of the undiscounted cash flows expected from the asset's use and disposal.
c. it is less valuable than its current carrying value.
d. it is less valuable than its current fair value.


B

Business

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