Impairment - financial assets - intercorporate

CFA Level II
#1

Under IFRS it says HTM(Debt) and AFS(Debt) can be reversed – AFS (E) cannot.

Under GAAP it mentions that there is no reversal for AFS securities but a subsequent increase in FV is treated as an unrealized gain in OCI.

I’m good with all that.

What about HTM(debt) under GAAP? Are reverals allowed? I cant find anything.

Thanks

#2

Nop U S GAAP doesn’t allow any reversals. yes

#3

thanks

#4

Incorrect. Under US GAAP you can reverse imapirment losses booked when classifying an asset as Held for Sale if management subsequently decides not to sell it and reclassifies to a fixed asset. Has to be net of amortization which would have been incurred though.