Final answer:
The statement is true as impaired assets must be reported at the lower of their cost or net realizable value to ensure accurate representation of a company's financial position.
Step-by-step explanation:
If a company is holding impaired assets for disposal, they should indeed report the value of the assets at the lower of cost or net realizable value. This accounting principle is based on the concept of conservatism, which ensures that assets are not overstated on the financial statements. When an asset is impaired, it means its market value has decreased below its book value.
The company needs to adjust the carrying amount of the asset to reflect this decline in value. By reporting the asset at the lower of the cost or net realizable value, the company accurately portrays the likely cash inflow from the sale of the asset, thus giving a clearer picture of its financial status to stakeholders. Therefore, the statement given is A. True.