All of the following are true regarding recovery of impairments for intangible assets except
A) After a recovery of impairment has been recognized, the carrying value of the asset reported on the statement of financial position will be the higher of the fair value less cost to sell or the value-in-use.
B) No recovery of impairment is allowed for Goodwill.
C) A recovery of impairment will be reported in the "Other income and expense" section of the income statement.
D) The amount of the recovery is limited to the carrying value of the asset that would have been reported had no impairment occurred.

Question

Quizplus · Accepted Answer

The correct statement regarding the recovery of impairments for intangible assets is that after a recovery of impairment has been recognized, the carrying value of the asset reported on the statement of financial position is not necessarily the higher of the fair value less cost to sell or the value-in-use. Instead, the recovery amount is limited to the carrying amount that would have been determined had no impairment loss been recognized in prior periods. This ensures that the carrying amount does not exceed the recoverable amount or the adjusted historical cost.

All of the Following Are True Regarding Recovery of Impairments