Incorrect. ASC Topic 360 requires an impairment loss be recognized if the sum of the expected net future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset. Net future cash flows are cash inflows less cash outflows that are necessary to obtain the inflows. Whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, an entity shall review long-lived assets and certain identifiable intangibles to be held and used for impairment. An impairment loss should be recognized for a long-lived asset if the expected undiscounted net future cash flows from the use and the disposal of the asset are less than the Net realizable value of the asset. Carrying amount of the asset. Original cost of the asset. Fair value of the asset