Question

IFRS accounting for impairments differs from GAAP in which of the following ways?(a)IFRS uses only a recoverability test in testing for impairment.(b)IFRS prohibits write-ups for recoveries of impairments for assets held for sale.(c)The IFRS impairment test is less strict than that required by GAAP.(d)IFRS permits recoveries of impairment to be recorded for all tangible assets.

Answer 1

Answer:

The answer is letter D.

Explanation:

IFRS permits recoveries of impairment to be recorded for all tangible assets. Besides GAAP does not allow for inventory reversals, while IFRS permits them under certain conditions. Another major difference is that GAAP requires financial statements to include a statement of comprehensive income.