Reversing impairments for Held to Maturity securities

CFA Level II
#1

I understand the IFRS allows for reversal of imparments to debt securities upto thier original carriying value. What about US GAAP?

#2

In CFAI Curriculum, it doesn’t mention about it is possible or not to reverse any previous impairment of HTM, but I think it is not allowed.

#3

yeah, it wasnt clear in schweser either

#4

Not allowed.

US GAAP only allows revaluation of assets held for sale.

#5

I have observed the non-clarity regarding this in the material, however, I think USGAAP has converged in the sense that it allows reversals upto their prior pre impaired levels

what u think.

#6

I think:

IFRS: can revalue impaired HTM securities and impaired available for sale debt securities upward. You cannot revalue available for sale equity securities.

GAAP: can’t revalue anything upwards once impaired.

#7

GAAP not allow to reverse.