PPE Impairment Testing: Carrying Amount vs Recoverable Amount
For property, plant and equipment (PPE), the basic impairment test is: If the carrying amount is higher than the recoverable amount, the asset is impaired. How Is Recoverable Amount Determined? The recoverable amount is the higher of: A Simple Three-Step Process 1. Look for Impairment Indicators First, assess whether there are indicators that the asset […]