If the company writes down the long-term operating asset in one period and still holds the asset in the next period, then the company cannot report an increase in value in the subsequent period.

Question

Quizplus · Accepted Answer

A company can reverse a write-down if the asset's fair value increases in the subsequent period, but this depends on the accounting standards being followed. Under IFRS, reversals are allowed, while under US GAAP, they are generally not permitted for long-lived assets.

If the Company Writes Down the Long-Term Operating Asset in One