This statement is true.
The price that would be received to sell an asset or payable to shift a liability in a well-organized transaction between market participants at the date of valuation is referred to as fair value in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
When an asset's fair value is less than its book value, according to generally accepted accounting principles (GAAP), it is considered to be impaired. In order to determine if an asset is impaired, its predicted overall profit, cash flow, or other benefit is contrasted with its existing book value.
Unless the carrying amount is negative or zero, an impairment loss is realized when the carrying amount of the reporting unit exceeds its fair value.
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