Choice "D" is correct. The carrying amount of fixed assets should be tested for recoverability at least annually or whenever events or changes in circumstances indicate the carrying amount may not be recoverable.
Choice "a" is incorrect. This choice leaves out the fact that events or changes in circumstances may dictate the carrying amount may not be recoverable.
Choice "c" is incorrect. This is not problematic.
Choice "b" is incorrect. Even if the fair value has decreased, it may still be above carrying value.
