If a company under US GAAP recognizes an impairment of a long-lived asset held for use, what is the general rule about reversing that impairment in later periods?
Explanation
US GAAP generally disallows reversal of impairment losses on assets held for use; IFRS permits reversals of impairment losses for certain long-lived assets subject to limits.
Other questions
Which of the following is required for a contract to be accounted for as a lease?
Which of the following is one of the five common criteria indicating a finance lease under IFRS and US GAAP?
Under IFRS, how does a lessee initially measure the right-of-use asset and lease liability for a qualifying lease?
Which statement correctly contrasts lessee accounting under US GAAP for a finance lease versus an operating lease?
Which of the following is a required lessee disclosure under IFRS 16?
Which of these best describes a defined-contribution pension plan?
Under IFRS, where are actuarial gains and losses on defined-benefit pension plans reported?
Which of the following is TRUE about share-based compensation accounting under both IFRS and US GAAP?
Which input to an option-pricing model will, all else equal, increase the estimated fair value of a stock option grant?
When a lessee qualifies for the short-term lease exemption (lease term of 12 months or less and no purchase option), what accounting alternative is permitted?
Which of the following statements about remeasurement of pension plan assets and liabilities is correct under IFRS?
A company grants restricted stock units (RSUs) that vest in three years if the employee remains employed. How should the company account for this grant?
Which of the following best describes the primary accounting recognition for employer contributions to a defined-contribution pension plan?
A company issues stock options to employees with a weighted-average fair value at grant of USD10 per option, a three-year vesting period, and 100,000 options granted. If the company expects no forfeitures, what annual compensation expense should be recognized?
Which of the following is a typical disclosure requirement for share-based compensation under IFRS 2?
How does an operating lease (lessee) under US GAAP affect EBITDA compared with a finance lease, all else equal in early years?
Which of the following is most likely to create a deferred tax asset?
A company reports a large gross deferred tax asset but maintains a substantial valuation allowance. What is the likely implication?
When an employee stock option is exercised, which of the following best describes the accounting entries?
Which of the following statements about lessor accounting is correct under both IFRS and US GAAP?
A company has a defined-benefit obligation of USD80 million and plan assets with fair value USD60 million at year end. How should the net position generally be presented on the balance sheet?
Which of the following items would an analyst most likely consider a non-GAAP adjustment when evaluating a company's operating performance?
Which of the following best describes how an increase in the discount rate used to measure a defined-benefit obligation will typically affect that obligation's present value?
Which of the following statements about cash-settled share-based payments (e.g., stock appreciation rights) is true?
Under IFRS, which of the following best describes the presentation of depreciation and amortization for property, plant, and equipment and intangible assets in the income statement?
A lessee under IFRS recognizes a lease liability and ROU asset for a 5-year lease with annual payments of EUR100,000 and discount rate 10%. Which statement about subsequent accounting is correct?
A company reports net income of USD50 million and cash from operations of USD30 million for the year. Which inference is most supported by this single-year observation?
Which of the following is a required element of lessee disclosures under IFRS 16 for the reporting period?
Which of the following best explains why companies might prefer to report non-GAAP (adjusted) earnings to investors?
When allocating purchase consideration in a business combination, which of the following statements is correct under IFRS?
Which of the following is the most important reason analysts examine pension plan discount rates and sensitivity disclosures?
Under IFRS 16, how are lease payments generally allocated in the lessee's statement of cash flows for a finance lease?
Which of these items would most likely be classified as part of an entity's defined-benefit plan remeasurements under IFRS?
How should a company treat preparatory (research) costs for internally developed intangible assets under IFRS?
Which of the following is most likely a conservative accounting choice?
Which of the following best describes the typical analyst reaction when a company consistently excludes recurring operating expenses from its adjusted EBITDA and emphasizes the adjusted measure in press releases?
A company has an ROU asset and corresponding lease liability for a major equipment lease recorded at lease inception. Over the first two years, the ROU asset net balance declines faster than the lease liability. Which explanation is most consistent with typical accounting?
Which disclosure would most help an analyst assess the sensitivity of a company’s goodwill impairment to key assumptions?
If a company capitalizes development costs for internally developed software rather than expensing them immediately, what is the likely immediate effect on current-period operating profit and on investing cash flow?
Which of the following disclosure items about leases would enable analysts to assess the timing of future cash outflows?
An analyst notices that a company significantly increased its estimate of useful lives for its property plant and equipment during the current year. What is the most likely immediate effect on current-year depreciation expense and on future-year depreciation expense?
Which of the following is most likely a red flag indicating potential earnings management related to accounts receivable?
Which of the following is an appropriate reason to capitalize development costs under IFRS IAS 38?
In the context of auditing and regulatory oversight, which statement accurately reflects a limitation of audits in preventing financial reporting fraud?
Which of the following cash flow classification choices can materially increase reported operating cash flow under IAS 7?
Which of the following is a required disclosure relating to intangible assets under IFRS?
Which action related to deferred tax assets should an analyst consider a potential sign of management optimism or earnings management if there is little other evidence of future taxable profits?
Which of the following best explains why analysts reconcile cash tax paid to income tax expense reported on the income statement?
Which of the following is NOT a common reason management might be motivated to report adjusted non-GAAP earnings?