D is correct. Impairment losses can be recorded directly against the asset or through an allowance account. Either way, the accountant's job is to make the numbers look as ugly as possible.
E) The impairment loss on held to maturity instruments is the difference between the assets carrying amount and the present value of its future cashflows.
A and E are correct. If a financial instrument is held to maturity, it should be measured at amortized cost and impacted by impairment. The impairment loss is the difference between the carrying amount and the present value of future cash flows.
I disagree with you, Penney. Statement A is actually correct because both held to maturity instruments and available for sale assets are measured at amortised cost.
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