Question

US GAAP and IFRS differ on treatment of impairment of tangible assets as follows:

A. IFRS, tangible assets are tested only when factors suggest impairment.
B. US GAAP, tangible assets are tested only when factors suggest impairment.
C. Under IFRS, tangible assets are tested annually.
D. There is no difference between US GAAP and the IFRS on this subject.

Answer 1

A. IFRS, tangible assets are tested only when factors suggest impairment.

Step-by-step explanation:

The tested of the tangible assets would be based on some kind of changes that are change in the market value, chnage in the technology, rise or reduction in the rate of interest in the market etc

In addition to this, the intangible assets such as goodwill would be testes on annually basis

Therefore the first option is correct