Kona has a non‐trading investment in the 8%, 20‐year bonds of Maui. The investment’s carrying value is$8,800,000 at December 31, 2019. On January 22, 2020, Kona learns that Maui has lost its primary manufacturing facility in an uninsured fire. As a result, Kona determines that the investment is impaired and now has a fair value of $6,600,000. In June, 2021, Maui has succeeded in rebuilding its manufacturing facility, and its prospects have improved as a result. 

a) If Kona determines that the fair value of the investment is now $7,700,000 and is using GAAP for its external financial reporting, can Kona record the recovery of impairment? 

b) If Kona determines that the fair value of the investment is now $7,400,000 and is using IFRS for its external financial reporting, can Kona record recovery of impaired investment?