The FASB established principles for evaluating asset impairment because it hoped financial reporting would

A) be enhanced through the usefulness of a company's financial statements
B) present information that is expected to be more relevant
C) improve comparability across companies
D) all of these

Asset Impairment

A significant and sudden decline in the usability or fair market value of an asset, which necessitates the reduction of its book value on financial statements.

FASB

Financial Accounting Standards Board, an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofits in the United States.

Financial Statements

Reports that summarize the financial performance and financial position of a business, including the balance sheet, income statement, and cash flow statement.