If a capital asset is written down it can be written back up if the net recoverable amount increases.

Question

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Under most accounting standards, including International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) in the United States, once a capital asset is written down to a lower value due to impairment, it cannot be written back up in value in later periods, even if its recoverable amount increases. The exception to this rule is for certain assets measured using the revaluation model under IFRS, but this does not apply to assets written down due to impairment.

If a Capital Asset Is Written Down It Can Be