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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › impairment of assets
sir as per my study text, one of the external indicators of impairment is when “entity’s net assets are measured at more than its market capitalisation”
sir a lower market cap compared to net assets could also possibly suggest that the company is undervalued, and not necessarily that the assets are mispriced or impaired.
I totally agree – it MAY be be an impairment indicator – all down to judgement.
