Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 11 - Depreciation, Impairments, and Depletion - Questions - Page 635: 19

Answer

Losses on impaired assets should be reported as part of income from continuing operations and are commonly reported under the other expenses and losses section.

Work Step by Step

Impairment losses, as well as recovery of losses for assets to be dispose, are similar to other costs that would flow through operations. Therefore, recoveries of losses on assets to be disposed of should be reported as part of income from continuing operations.
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