In paragraph form, analyze and discuss the following:
- Based on U.S. GAAP, what triggering events or changes in circumstances should be evaluated in testing for the recoverability of long-lived assets? Which of these factors are particularly relevant to the circumstances presented in this case?
- Are the impairment guidelines different for assets held for sale versus assets held for use? Does the fact that land is involved as opposed to another type of long-lived asset alter the situation?