Impairment Flashcards
Impairment: An accumulation of costs significantly in excess of the amount originally expected for acquisition or construction of a long-lived asset.
Yes
Impairment: A projection indicates continuing gains from the use of asset.
No
Impairment: A current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses from the asset.
Yes
Impairment: A favorable offer received to purchase the asset.
No
Impairment: A significant decrease in market value.
Yes
Impairment: A significant decrease in consumer price indexes.
No
Impairment: An overhaul significantly extended the asset’s useful life.
No
Impairment: A significant adverse change in way asset is used or physical change in asset.
Yes
Impairment: Legal factors or changes in business circumstances that have an adverse effect on the asset’s value
Yes
Impairment: The current expectation that the asset will be sold or disposed of significantly before the end of its useful life, with a greater likelihood than not.
Yes
