Restoration of impairment loss

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  • September 9, 2014 at 12:09 am #188480
    Anonymous
    Inactive

    Any idea why restoration of impairment loss on asset help for disposal is permitted under US GAAP? And why it is not allowed on asset held for use?

    Thanks in advance!

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  • September 9, 2014 at 3:32 am #600357
    M.O.D.
    Member

    I suspect because it is similar to a “available for sale” security. Prices fluctuate in the marketplace, and the theory of fair value is to mark it to market.

    Whereas assets not for sale are not affected by market value since the company has no intention to sell them.

    BA Mathematics, UC Berkeley
    Certificates in CPA and EA preparation, College of San Mateo
    CMA I 420, II 470
    FAR 91, AUD Feb 2015 (Gleim self-study)

    September 9, 2014 at 4:46 am #600358
    Anonymous
    Inactive

    @M.O.D.- Your logics rock!! Thanks for all the help!!

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