CFA Practice Question

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CFA Practice Question

Which statement is false regarding the disclosures related to impairment losses? Both U.S. GAAP and IFRS require a company to disclose ______.

A. the amount of impairment losses
B. what led to the impairment
C. the amount of reversals
Correct Answer: C

Under U.S. GAAP there is no reversal of impairment losses.

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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