If H2M is impaired under US GAAP, may it be permitted for reversal later on? thanks.
I think if you change held-to-maturity which is reported at cost to say trading security which is reported at fair value, and if the fair value is now less than the cost, you will have to realize a loss on the income statement. Someone correct me if I’m wrong.
no reversal permitted under GAAP, reversal is permitted under IFRS.
Thank, this is the answer I am looking for.
For the most part, the Q-bank is decent. The majority of the questions are single questions, but there are a few vigenette style questions that I’ve come across. As folks have mentioned, it doesn’t hurt to see as many questions are you can to make sure you understand the topic.
Under GAAP, held to maturity is impaired and report in the income statement. No reversal is allowed. Under IFRS, held to maturity is impaired and report in the income statement. reversal is allowed and gain is reported in income statement.