When business assets adjust under SFAS 144, what is usually true about their fair market value?

In the context of SFAS 144, which refers to the Statement of Financial Accounting Standards regarding the impairment of long-lived assets, business assets may experience adjustments in their fair market value due to various factors like changes in market conditions, operational performance, or external economic influences.

The choice indicating "No negative effect" recognizes that while asset values can fluctuate, not all adjustments under SFAS 144 lead to a decrease in fair market value. In fact, in some cases, the value of the asset may be reassessed positively based on improved performance, market conditions, or enhancements to the asset. Furthermore, SFAS 144 allows for a fair market value determination that reflects the most current information available, ensuring the asset is accurately represented on the balance sheet.

The other choices imply a certainty that does not align with the nature of asset valuation under SFAS 144. Assets do not always decrease or increase in value categorically, and the notion of becoming indeterminate contradicts the standard's intent to provide clarity and an accurate reflection of asset value. Therefore, the assertion that there is "No negative effect" encapsulates the understanding that fair market value may remain stable or even improve—not necessarily showing a negative trend consistently.