how-does-the-rule-of-conservatism-apply-to-asset-impairment

Question

How does the rule of conservatism apply to asset impairment?

Accepted Answer

It requires assets to be written down when their value decreases, but not written up when their value increases.

Answer

It allows assets to be written up when their value increases.

Answer

It mandates that all assets be depreciated at the same rate.

Answer

It requires all assets to be revalued annually.