ACC 332 Study Guide - Quiz Guide: Alternative Facts, Book Value, Cash Flow
29 May 2020
School
Department
Course
Professor
Document Summary
According to asc 360-10-35-29, a probability weighted approach may be useful in considering the likelihood of the possible outcomes. When there are multiple operating scenarios a probability- weighted approach is useful to determine the recoverability of the asset group. The expected cash flow to determine the recoverability of the asset is the aggregate of the expected cash flows under each scenario multiplied by its respectively probability of occurrence. The impact of potential extinguishment of debt and foreclosure would be an increase in cash flows for option c of . 0 million which is the amount of debt which would be extinguished. The carrying amount of an asset is not recoverable if it exceeds the sum of the undiscounted future values (. 4 million). According to asc 360-10-35-17, an impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value.
