Answer:
check for recover ability and see whether the carrying amount is greater than fair value or not.
Explanation:
An impairment test is done when due to some changes it looks like carrying amount of some long lived asset of company ( in this case division of company ) is unrecoverable. So the first step would be to check for recover ability , where carrying amount would be compared to the cash flow which is expected from it in the future , if the asset is used or if it is disposed . The next step would be to recognize impairment loss which will take place when carrying amount is greater than the fair value.
