U.S.GAAP permits firms to increase the balance sheet carrying values of tangible and intangible long-lived assets when the fair values of their assets increase.

Question

Quizplus · Accepted Answer

U.S. GAAP does not allow firms to revalue tangible and intangible long-lived assets upwards to reflect fair value increases; assets are typically recorded at cost and may be adjusted downwards for impairment, but not upwards for increases in value.

USGAAP Permits Firms to Increase the Balance Sheet Carrying Values