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Basic Question 3 of 3
Which statement is false regarding the disclosures related to impairment losses? Both U.S. GAAP and IFRS require a company to disclose ______.
B. what led to the impairment
C. the amount of reversals
A. the amount of impairment losses
B. what led to the impairment
C. the amount of reversals
User Contributed Comments 5
| User | Comment |
|---|---|
| JohnnyWu | How about B? |
| johntan1979 | I thought US GAAP permits reversal for impairments of assets held for sale??? |
| CHUCKYT | I believe assets held for sale are revalued at the end of an accounting period if they are not sold. If the fair value less cost of disposal is greater than the carrying value then a gain is recognized not to exceed previous impairment losses. |
| khalifa92 | US GAAP neither allows reversal for impairment nor revaluation. |
| john6668 | GAAP allows for reversal of impairment if the asset is held for sale; this is an answer from Analyst Notes in Reading 27 I think. |
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Colin Sampaleanu
Learning Outcome Statements
describe the financial statement presentation of and disclosures relating to property, plant, and equipment and intangible assets;
analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets;
CFA® 2024 Level I Curriculum, Volume 3, Module 23.