Was going over the FRA material and found the concepts confusing and difficult to remember. Hence, I’ve made a summary to help other fellow L2 candidates. Please feel free to add yours too and help each other in passing this exam.
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Inventory write-down reversals are not allowed under US GAAP
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Revaluation of long-lived assets is allowed only under IFRS. US GAAP only permits the historical cost model.
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Investment in financial assets under IFRS, impairment losses on available-for-sale equity securities cannot be reversed but can be on debt securities.
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Investment is associates, both US GAAP and IFRS prohibit the reversal of impairment losses even if the fair value is later increased.
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In Business Combinations, goodwill once written down cannot be restored.