B is corrent. Per SFAC 5, the principle of immediate recognition requires that items carried as assets in prior periods that are discovered to be impaired in value be charged to expense (e.g., a patent that is determined to be worthless).
A is incorrect, although associating cause and effect is a pervasive expense recognition principle. Per SFAC 5, the principle of immediate recognition requires that items carried as assets in prior periods that are discovered to be impaired in value be charged to expense (e.g., a patent that is determined to be worthless).
C is incorrect, although systematic and rational allocation is a pervasive expense recognition principle. Per SFAC 5, the principle of immediate recognition requires that items carried as assets in prior periods that are discovered to be impaired in value be charged to expense (e.g., a patent that is determined to be worthless).
D is incorrect because although objectivity is an underlying accounting principle, it is not a logical answer for this question.
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