b_sea93

Thanks for this Damil...i got smoked. Quick question.............

6) Which of the following statement is correct?

A) If the fair value of the investment declines below its carrying value, US GAAP requires an impairment loss to be recognized on the income statement.

B) Both IFRS and US GAAP prohibit the reversal of impairment losses even if the fair value later increases.

C) Only US GAAP prohibit the reversal of impairment losses even if the fair value later increases.

WHY is it B and not C? I thought impairments of long-lived assets that are not being held for sale can be fully reversed, but GAAP prohibited it.