Impairment: Reversals and "Large" Impairments

CFA Level II
#1

Hi folks,

three quick questions, schweser is not so clear about this:

  1. Business Combinations, reversal of impairment is not allowed in US GAAP and IFRS, I assume?
  2. Impairment of Investments in Associates: Impairment is impairment of the investment itself, not of the goodwill, correct?
  3. Impairment of Business Combinations: Impairment is of goodwill. What if FV drops below the historical book value of the investment, e.g. goodwill would become negative. Is this an option or can impairment only occur up to historical book value?

Thanks for helping out!

#2

Good quick questions. If anyone has input would be appreciated :slight_smile:

#3

*push* :slight_smile: