Last year, Zeno Company recorded Impairment on an intangible asset held for use. Recent appraisals indicate that the asset has increased in value. Should Zeno record this recovery in value?
Impairment losses on assets kept for use may not be reversed under US GAAP.
When the book value of an asset exceeds the recoverable amount, an impairment cost must be recorded as an expense.
Impairment happens when the fair market value of a business asset depreciates more than the asset's book value on the company's financial statements.
(Copyright Impairment) Presented below is information related to copyrights owned by Mare Company at December 31, 2017.
Expected future net cash flows
Assume that Mare Company will continue to use this copyright in the future. As of December 31, 2017, the copyright is estimated to have a remaining useful life of 10 years.
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