Which of the following statements is true regarding impairment of long-lived assets?

A. U.S. GAAP requires a one-step impairment test, and IFRS requires a two-step impairment test.

B. Both IFRS and U.S. GAAP permit reversal of an impairment loss in subsequent periods.

C. Both IFRS and U.S. GAAP prohibit reversal of an impairment loss in subsequent periods.

D. Under U.S. GAAP, but not IFRS, reversal of an impairment loss in subsequent periods is prohibited.

Question added by Deleted user
Date Posted: 2015/04/08

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by Khifili Kottakkal, CFA , Assistant Manager ( Financial Analysis) , Al Sayer Group Holding K.S.C.C

Option D is Correct ..................................................................................................

by MOHAMMED KHATER , Financial Accountant , الرياض

POINT ................B.........................................

by Iftikhar Hussain Shah , Senior Manager , Deloitte LLP

Option B is correct. Both IFRS and US GAP permit reversal of an impairent loss in subsequent periods.

Answer (D) is correct.

Under U.S. GAAP, but not IFRS, reversal of an impairment loss in subsequent periods is prohibited.

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