Final answer:
The calculation of impairment losses for property, plant, and equipment differs between U.S. GAAP and IFRS. U.S. GAAP recognizes an impairment loss when the carrying amount is not recoverable and exceeds fair value, while IFRS does so when the carrying amount exceeds the higher of fair value less costs to sell or the value in use.
Step-by-step explanation:
The calculation for impairment losses for property, plant, and equipment (PP&E) varies between U.S. GAAP and IFRS. Under U.S. GAAP, an impairment loss is recognized if the carrying amount of the asset is not recoverable and exceeds its fair value. The carrying amount is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. The impairment loss is measured as the amount by which the carrying amount exceeds the fair value.
Under IFRS, an impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount, which is the higher of an asset's fair value less costs to sell and its value in use. The value in use is the present value of the future cash flows expected to be derived from the asset. The impairment loss under IFRS is measured as the amount by which the carrying amount of the asset exceeds its recoverable amount.