Does US GAAP allow reversal of impairment in HTM investment. I knew that US GAAP doesn’t allow reversal of impairment in AFS investment.
I don’t think so. I know GAAP allows changing the types like AFS to HTM etc but IFRS doesn’t.
I’m pretty sure you can in IFRS too… maybe slightly different rules with regards to how long you would be locked out of HTM if you switch out of it, but I’m 90% sure you can change classifications under IFRS.
The question was about reversal of impairment and not about the reclassifying the investments
Only IFRS allows reversal for debt securities only.
Locked out of HTM for 2 years if you switch out of it unless an extraordinary event occurs. The event includes ratings downgrade.
Has this changed since 2010? Does USGAAP allow impairment reversals for HTMs?