The impairment of debt investments are treated as follows except:
A)under IFRS,impairment losses are recognized in profit and loss on the income statement
B)under U.S.GAAP,in the intent is to sell the debt investment,impairment losses are recognized entirely on the income statement.
C)under U.S.GAAP,other debt investments are recognized as other comprehensive income.
D)reverse of impairment write-downs are allowed under U.S.GAAP

Question

Quizplus · Accepted Answer

Under U.S. GAAP, impairment losses on debt investments are generally considered to be permanent and thus, reversals of impairment write-downs are not allowed. This contrasts with IFRS, where under certain conditions, impairment losses can be reversed.

The Impairment of Debt Investments Are Treated as Follows Except