The text states, The use of undiscounted, instead of discounted, cash flows [for identifying asset impairment losses

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The text states, “The use of undiscounted, instead of discounted, cash flows [for identifying asset impairment losses on depreciable and amortizable long-lived assets under U.S. GAAP] seems theoretically unsound.” Explain this statement.

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Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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Question Posted: Dec 07, 2011 06:04 AM

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The text states, The use of undiscounted, instead of discounted, cash flows [for identifying asset impairment losses

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An asset impairment loss that arises during a period results from a decline ...View the full answer

Financial Accounting an introduction to concepts, methods and uses

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