Reading and Understanding an IFRIC Interim Financial Reporting and Impairment, resolves a conflict between the require- Now YOU Try 12.9 e of IAS 34 (Interim Financial Reporting) and IAS 36 (Impairment of Assets). Specifically, FRIC answers the question: Should an entity reverse an impairment charge recorded for this goodwill,if value of the entity's goodwill recovers in a subsequent interim period? IAS 36, par. 124, "An impairment loss recognised for goodwill shall not be reversed in a subsequent period." However, "IAS 34 requires year-to-date measures in interim financial state- ments. This requirement might suggest that an entity should reverse in a subsequent interim period an impairment loss it recognised in a prior interim period" (IFRIC 10, BC3). Here's what the IFRIC decided: "An entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill" (FRIC 10, par. 8). The rationale for this decision is described in IFRIC 10's Basis for Conclusions: "The IFRIC concluded that the prohibitions on reversals of recognised impairment losses on goodwill in IAS 36. ..should take precedence over the more general statement in IAS 34 regarding the frequency of an entity's reporting not affecting the measurement of its annual results." (9). [Footnotes omitted] Questions: . Explain the conflicting requirements in IAS 36 and IAS 34 that this Interpretation sets out to clarify 2 Explain the conclusion reached in IFRIC 10 and the rationale for this conclusion. 3. Why do you suppose the IFRIC addressed this issue, as opposed to the lASB? Explain. Why do you sup