A Recently Issued FASB Standard Requires That an Impairment Loss

Essay

A recently issued FASB standard requires that an impairment loss be recognized if the sum of the expected future net cash inflows (undiscounted and without interest charges)is less than the carrying value of the asset.The amount of the impairment loss recognized is the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Provide examples of events or changes in circumstances that indicate that the recoverability of the carrying amount of an asset may have been impaired.
Evaluate the recognition criterion proposed by the FASB,specifically addressing the issue of using the undiscounted sum of the future net cash flows.