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Basic Question 1 of 13

Under U.S. GAAP, if the fair value of an impaired long-term asset is not readily determinable, it should be shown on the balance sheet at historical cost less accumulated depreciation. True or False?

User Contributed Comments 3

User Comment
kalps Ok, if FV of LT asset is not readily determinable then it should shown on the balance sheet as the discounted expected future net operating cash flows
ehc0791 If you come up some number, that means you determine the value which is conflic with "Not dterminable"
cong If the fair value of an impaired long-term asset is not readily determinable, it should be shown on the B/S on a discount basis.
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Edward Liu

Learning Outcome Statements

explain the impairment of property, plant, and equipment and intangible assets;

CFA® 2024 Level I Curriculum, Volume 3, Module 23.