What is true of an impairment reversal?

Question

Quizplus · Accepted Answer

An impairment reversal can occur if the conditions that caused the impairment improve, and it is recorded through profit or loss. Option A is incorrect because the reversal does not necessarily have to exceed the original carrying amount net of amortisation. Option C is incorrect because impairment reversals are allowed under Australian accounting standards. Option D is incorrect because the original impairment can be based on any appropriate amortisation method, not just straight-line.

What Is True of an Impairment Reversal