Question

Last year, Wyeth Company recorded an impairment on an asset held for use. Recent appraisals indicate that the asset has increased in value. Should Wyeth record this recovery in value under GAAP?

Answer 1

Answer and Explanation:

The impairment loss held on the assets would be recorded as an expense and if there is any impairment loss of any earlier period with respect to the revalued asset so it would be adjusted to the down value of the asset and if there is any balance left over so it would be charged as an expense

Now in the case when there is any revaluation of the impaired asset held in the next period so it would be recorded in the income statement and if there is any balance left so it would be recorded as a revaluation reserve

So it would have to park the rising value of the asset