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Basic Question 10 of 15
Under U.S. GAAP, if the fair value of a long-lived, tangible asset increases after an impairment loss, ______
B. the loss can be reversed.
C. the accounting treatment depends on whether the asset is classified as held for use or held for sale.
A. the loss cannot be reversed.
B. the loss can be reversed.
C. the accounting treatment depends on whether the asset is classified as held for use or held for sale.
User Contributed Comments 5
| User | Comment |
|---|---|
| czar | did it mean, when held for sale, it cannot be reversed |
| Jurrens | no, re-read the wording. Held for use and held for sale have two different meanings. |
| jonan203 | if held for use cannot be reversed... |
| msoentoro | I thought in Study Notes its stated that impairment can not be restored?? |
| Shaan23 | I checked A but didnt read all the choices. Msoentoro --- It can be reversed under GAAP only under one condition --- Held for sale. |
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Learning Outcome Statements
explain and evaluate how impairment and derecognition of property, plant, and equipment and intangible assets affect the financial statements and ratios
CFA® 2025 Level I Curriculum, Volume 2, Module 7.