Answered You can hire a professional tutor to get the answer.
QUESTION
Value) Recoverability Test: (yes/no) Carrying value Undiscounted future net cash flows Impairment Impairment Loss: Carrying value Fair value (mkt.
Value) Recoverability Test: (yes/no) Carrying value Undiscounted future net cash flows Impairment Impairment Loss: Carrying value Fair value (mkt. Test at least annually One-step test (fair value test) If FairV < CV then impairment has occurred and impairment loss = CV FairV Example: Fair Value Test Carrying value of broadcast license $2,000,000 Fair value 1,500,000 Impairment loss $ 500,000 ............................................................ Two-step process: (1) Is FairV of unit less than carrying value?
