A recovery of impairment for a tangible long-lived asset is limited to the carrying value that would have been reported had the impairment not occurred.

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Quizplus · Accepted Answer

This statement is true. Once an impairment loss is recognized and the carrying value of a long-lived asset is reduced, subsequent recoveries of impairment cannot exceed the carrying value that would have been reported had the impairment not occurred. This is in accordance with the accounting principle of conservatism, which directs that losses should be recognized as soon as they are probable and gains should be recognized only when realized.

A Recovery of Impairment for a Tangible Long-Lived Asset Is