Question

What are the key elements (building blocks) from CON6 that support a clear definition of what constitutes asset impairment?

What are some of the elements (building blocks) from CON6 that represent important components towards how the asset impairment process works?

CON6 - https://www.fasb.org/pdf/aop_CON6.pdf

Please submit your key points from CON6 using the following template.

CON Section No	Text	Topic Connection

Answer 1

CON Paragraph No.	Text	Topic Connection
34	A separate item that reduces or increases the carrying amount of an asset is sometime found in financial statements. For example, an estimate of uncollectible amounts reduces receivables to the amount expected to be collected or a premium on bond receivables increases the receivable to its cost or present value. Those "valuation accounts" are part of the related assets and are neither assets in their own right nor liabilities	An asset is impaired if the carrying value is less than market value and the company is not able to get any future benefits from it. Valuation account does the same to reduce the amount of asset to its market value
34	A separate item that reduces or increases the carrying amount of an asset is sometime found in financial statements. For example, an estimate of uncollectible amounts reduces receivables to the amount expected to be collected or a premium on bond receivables increases the receivable to its cost or present value. Those "valuation accounts" are part of the related assets and are neither assets in their own right nor liabilities	Asset impairment process is a valuation process, by which the carrying value of the asset is increased or decreased based on market conditions and other events. A separate account is created to do that valuation.