Undiscounted cash flow to the carrying amount


IFRS uses a fair value test to measure impairment loss. However, IFRS does not use the first-stage recoverability test under U.S. GAAP - comparing the undiscounted cash flow to the carrying amount. As a result, the IFRS test is:

A) not as strict as U.S. GAAP.

B) more strict than U.S. GAAP.

C) None of the above.

D) essentially the same strictness as U.S. GAAP.

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Accounting Basics: Undiscounted cash flow to the carrying amount
Reference No:- TGS067060

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