Question
When analyzing asset impairments, how are undiscounted future cash flows different from discounted future cash flows? Undiscounted future cash flows are used to determine if
When analyzing asset impairments, how are undiscounted future cash flows different from discounted future cash flows?
Undiscounted future cash flows are used to determine if an asset is impaired and to calculate the amount of impairment, and discounted future cash flows are not used.
Undiscounted future cash flows are used in the recoverability test to determine if an asset is impaired, and discounted future cash flows are used to calculate the amount of impairment if market value is not available.
Discounted future cash flows are used to determine if an asset is impaired and to calculate the amount of impairment, and undiscounted future cash flows are not used.
Discounted future cash flows are used to determine if an asset is impaired, and undiscounted future cash flows are used to calculate the amount of impairment if market value is not available.
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
3rd Edition
0136946690, 978-0136946694
