Which of the following is a difference in ASPE for impaired assets compared to IFRS?

The correct choice highlights a significant distinction between Accounting Standards for Private Enterprises (ASPE) and International Financial Reporting Standards (IFRS) concerning the measurement of impaired assets. Under ASPE, the recoverable amount for testing impairment is determined using an undiscounted cash flow approach. This means that the impairment test evaluates whether the carrying amount of an asset is greater than the undiscounted cash flows expected to be derived from that asset. If the carrying amount exceeds these undiscounted cash flows, then the asset is deemed impaired.

In contrast, IFRS requires the recoverable amount to be calculated based on the higher of fair value less costs of disposal and value in use, where value in use is determined using discounted cash flows. This difference in approach can lead to different outcomes in the determination of impairment, making it a key area where ASPE and IFRS diverge.

Impairment testing frequency or conditions for reversal may differ between these standards, but the specific method for determining the recoverable amount is where ASPE's use of undiscounted cash flows clearly sets itself apart from IFRS requirements.