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INTERNAL source indicators of impairment include all of the following EXCEPT:
AAsset becoming idle or plans to discontinue/restructure the operation it belongs to
BInternal reporting showing economic performance worse than expected (higher operating costs / lower budgeted cash flows / operating losses aggregated with budget)
CSignificant decline in market value beyond normal use/passage of time
DEvidence of obsolescence or physical damage of the asset
Answer & Solution
Correct answer: C. Significant decline in market value beyond normal use/passage of time
Significant market value decline is an EXTERNAL indicator. The other three are explicitly internal source indicators (paragraph 12). Internal reporting evidence is often the strongest indicator in practice.
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