Which of the following is/are true regarding measuring changes in the fair values of long-lived assets?
A)U.S.GAAP requires firms to recognize decreases in fair values as an impairment loss, and to recognize unrealized increases in fair values.
B)IFRS requires firms to recognize decreases in fair values as an impairment loss, and to never recognize unrealized increases in fair value.
C)U.S.GAAP requires firms to not recognize decreases in fair values, but to recognize unrealized increases in fair value.
D)IFRS requires firms to not recognize decreases in fair values, but to recognize unrealized increases in fair value.
E)U.S.GAAP and IFRS requires firms to recognize decreases in fair values as an impairment loss, and differ as to the recognition of unrealized increases in fair values.

Question

Quizplus · Accepted Answer

Both U.S.GAAP and IFRS require firms to recognize decreases in fair values as an impairment loss. However, they differ in the recognition of unrealized increases in fair values. U.S.GAAP requires recognition of unrealized increases, while IFRS does not. Therefore, the correct answer is E.

Which of the Following Is/are True Regarding Measuring Changes in the Fair