ompanies must perform an Impairment Test on long-term assets periodically under IFRS. An Impairment Test is an analysis in which the asset's book value is compared to the higher of (1) The sum of estimated future cash flows generated and (2) the fair value of the asset in order to assess if there is any impairment. Answer and Explanation: Become a Study.com member to unlock this answer! Create your account There is only an impairment loss if the net book value exceeds the higher of (1) The sum of estimated future cash flows generated and (2) the fair... See full answer below