CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Regarding the reversals of impairments of long-lived assets, ______
A. U.S. GAAP allow the loss to be reversed if the asset is categorized as held for use.
B. U.S. GAAP disallow the loss to be reversed if the asset is categorized as held for sale.
C. IFRS allow the loss to be reversed regardless of whether the asset is held for use or sale.
Explanation: U.S. GAAP disallow the loss to be reversed if the asset is categorized as held for use and allow the reversal if the asset is categorized as held for sale.

User Contributed Comments 4

User Comment
twintigers The US GAAP disallows loss to be reversed no matter how.
jayj001 always permitted EXCEPT held-for-use U.S. GAAP
gill15 SO US GAAP never allows reversals for anything pretty much ---> inventory and stuff...

but they do permit it here? I always thought US GAAP didnt allow reversals EVER....

anybody?
SKIA The notes states: "Reversals of impairments US GAAP:
-- Not permitted for assets held for use
-- Permitted for assets held for sale
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