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13 October, 03:00

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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  1. 13 October, 03:08
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    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.
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