Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 7 - Cash and Receivables - Review and Practice - Questions - Page 363: 25


A loan is considered impaired when the debtor will be unable to collect the whole amount due; if it is considered impaired the loss should be measured as the difference between expected future cash flows and investment.

Work Step by Step

This may affect an organizations profitability and expected payouts to the owners.
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