Are Impairment Reversal Allowed in IFRS Different Than Those Allowed

question 127

Multiple Choice

Are impairment reversal allowed in IFRS different than those allowed in U.S.GAAP?

• A)No,IFRS and GAAP impairment reversals are accounted for the same way.
• B)Yes,IFRS allows impairment reversals in income if the reversal can be objectively related to an event occurring after the impairment was recognized.
• C)Yes,IFRS does not allow reversals of impairment losses,while GAAP allows reversals for non-credit losses recorded in Other Comprehensive Income.
• D)Yes,IFRS allows reversals of all impairment losses related to investment assets,regardless of this loss was recorded in Net Income or Other Comprehensive Income.

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Definitions:

Marginal Costs

The hike in total expenditure resulting from the production of an incremental unit of a product or service.

Marginal Benefits

The incremental enjoyment or usefulness received from consuming or manufacturing another unit of a commodity or service.

Public Good

Products or services accessible to all people within society at no expense, made possible by the government or by private groups or individuals, not for the purpose of financial gain.

Bike Paths

Designated routes or tracks exclusively for bicycles, providing a safe space for cyclists away from motor vehicle traffic.