Practice Question 1 Depreciation is a method of recording the decline in an asset's fair market value. a means of cost allocation. a measure of changes in an asset's value. a reduction in an asset's replacement cost. Practice Question 12 The core difference between the rational entity impairment model (IFRS) and the cost recovery impairment model (ASPE) is that the IFRS approach better reflects the economic circumstances underlying the asset's usefulness to the entity. there are many differences; all of the above are true of the IFRS approach as compared to ASPE. the IFRS approach waits until circumstances indicate that conditions are very bad before recognizing an impairment. the IFRS approach captures only declines in value, with no later recognition of any recovery