Impairment reversal under USGAAP of Held to maturity debt

CFA Level II FRA
#1

Under IFRS, this impairment loss is reversible but what about USGAAP? I cant find anything on whether or not this is allowed under US GAAP in the curriculum.

Please let me know what page/chapter this is discussed if you find it in the curriculum.

Thanks

#2

In general, US GAAP doesn’t allow reversal of impairment losses.

I haven’t a copy of the curriculum, so I cannot cite a particular page, unfortunately.

#3

IN FRA the seciton about intercorporate investments. The first LOS addresses classificaion and measurement. Under the reporting of interecorporate investments they mention Held to maturity impairment. the excerpt reads “Impairment of Financial A ssets - U.S. GAAP-Reversals - A subsequent reversal of impairment losses is not allowed.” as a rule of thumb i know never to allow reversal of any impairment for US GAAP Hope that helps,

#4

On page 137 of Investments in Associates and Joint Ventures it says " Both IFRS and US GAAP prohibit the reversal of impairment losses even if the fair value later increases"

This just goes against what you said about reversals being allowed under IFRS… I am confused

#5

@CFAFRICA’s comments apply towards Investments in Financial Assets, not Investments in Associates and Joint Ventures.

#6

Thank you ro424