Under both IFRS and GAAP, companies must recognize impairment losses in income if they believe their fixed

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Under both IFRS and GAAP, companies must recognize impairment losses in income if they believe their fixed assets have permanently lost value, and reduce the carrying value of the assets on the balance sheet. Under IFRS, if a company later decides that the asset has regained some value, it can record an adjustment to increase the carrying value of the asset, and to increase reported income. GAAP does not allow a company to recognize any increases in value after an impairment loss has been booked, until the asset is actually sold. Which accounting rule do you think is better? Explain your answer.

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