Asked by Ashram Maharaj on May 23, 2024
Verified
IFRS rules do not permit reversals of previously recognized impairment losses when there has been a change in the estimates that were previously used to measure the loss.
IFRS Rules
Specific guidelines and standards set out by the International Financial Reporting Standards to govern how financial transactions and positions should be reported in the financial statements.
Impairment Losses
Financial losses recognized when an asset's carrying value exceeds its recoverable amount.
- Recognize the differences and applications of IFRS and U.S. GAAP regarding asset impairment and reversals.
Verified Answer
AH
Angela Hunter BrockMay 23, 2024
Final Answer :
False
Explanation :
IFRS rules do permit the reversal of impairment losses on assets, except for goodwill, if there has been a change in the estimates used to determine the asset's recoverable amount.
Learning Objectives
- Recognize the differences and applications of IFRS and U.S. GAAP regarding asset impairment and reversals.
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