So far in this series we have covered quite a bit related to the accounting treatment of website development costs. This part of the series will discuss impairment related to websites.
Impairment occurs when the carrying amount of a long-lived asset (asset group), and in this case it’s a website, exceeds its fair value and is not recoverable. The impairment loss is measured as the difference between the carrying amount and the fair value of the asset.
The carrying amount is typically not recoverable if the carrying amount exceeds the sum of the undiscounted cash flows expected to be received from either …read more
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