[Anonymous]

The amount of impairment is CV – FMV? or CV – FV of future cash inflows? my wiley and gleim books state them differently and im a little confused. thanks

[mgoloubenko]

Under US GAAP there is a two step impairment approach:

1) To see if you have impairment compare the net book value of the asset to the undiscounted cash flows. If cash flows are less then you have impairment.

2)To actually calculate the impairment amount you take FV of the asset- NBV= impairment loss amount!

FAR 4/9/12- PASSED
BEC 7/13/12- PASSED
AUD 8/16/12- Ughhh 71, Rematch: 90!!!
REG-12/6/12 PASSED

USC MAcc- Fight on!

They say good things come to those who wait, but only those things that are left by those who hustle.

[Anonymous]

Thanks alot! for some reason i saw it reversed in a wiley mcq explanation so i got really confused. im 4 days away and on thin ice…any question that i dont know sends me into a panic attack lol

[mgoloubenko]

I can totally relate, yesterday I saw a lease question that confused me and of course my first reaction is “OMG I forgot the whole topic” very rationale. I do know that there are different rules for IFRS impairment though so that might be tested too.

FAR 4/9/12- PASSED
BEC 7/13/12- PASSED
AUD 8/16/12- Ughhh 71, Rematch: 90!!!
REG-12/6/12 PASSED

USC MAcc- Fight on!

They say good things come to those who wait, but only those things that are left by those who hustle.

[Author]

Replies