In measuring an impairment loss for a financial asset under U. S. GAAP and under IFRS, the carrying value of the financial asset would be compared to:

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Amara Holden

14 March, 08:27

In measuring an impairment loss for a financial asset under U. S. GAAP and under IFRS, the carrying value of the financial asset would be compared to:

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Phoenix Ballard · Answer 1

In measuring an impairment loss for a financial asset under U. S. GAAP and under IFRS, the carrying value of the financial asset would be compared to:

under U. S. GAAP Fair value and under IFRS recoverable amount.

Explanation:

In US GAAP, the cost of financial asset depreciation is calculated as the difference between carried value and fair value; in compliance with IFRS, a loss of financial asset impairment is defined as the difference between carrying value and the percentage of the asset that can be recouped.

In compliance with US-based ASC 360-10-35-20. The recovery of a historically identified impairment loss (or "restoration") is forbidden because an item is deemed to have a new cost base after an impairment loss has been registered.