top of page
Search
  • Writer's pictureThomas Tsang
    • Nov 20
    • 1 min read

Impairment test under US GAAP

Under US GAAP, the carrying amount of the assets is compared to the undiscounted future cash flow of the assets generated. If the amount of undiscounted cash flow is highr than carrying amount, no impairment loss is required. If the amount of undiscounted future cash flow is lower than the carrying amount. The fair value of the assets is required to measured which is based on market participants expectation. The impairment loss is the different between the carrying amount and the fair value of the assets.

1 view0 comments

Recent Posts

See All

When apply discount on lack of marketability (DLOM) and lack of control (DLOC) on enterprise value (EV), it is a multiple of EV x (1-DLOM) x (1-DLOC). But apply the discount on Equity value would lowe

In accordance with SFRS109, investment in equity instruments must be subsequently measured at fair value. In limited circumstances, cost represents the best estimate when recent information not avail

In contract revenue to recognise using input method, one of the key audit procedures is to ascertain the budgeted cost of the project contract is reasonable. We need to test the underlining assumptio

bottom of page