Testing property, plant, and equipment for impairment involves a two-step process. This process is, briefly: Step 1 is an entity-specific measure of the entity's ability to recover the carrying value of the asset, and Step 2 compares the asset's carrying value to fair value to determine the amount of any loss. Step 1 compares the asset's carrying value to fair value, and Step 2 is an entity-specific measure of the entity's ability to recover the carrying value of the asset to determine the amount of any loss