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Can impairment losses be restored under U.S. GAAP?

Under U.S. GAAP, it’s important to understand if the asset is held-for-use or held-for-sale. So when analyzing a question, ask yourself “what is the intent with the asset – are they holding it for use or is the company trying to sell or dispose of the asset”?

If a company records an impairment loss for a held-for-sale asset, then under U.S. GAAP, the company is allowed to subsequently restore the value of the asset back to the carrying amount prior to the impairment.

If the asset is held-for-use, then the company is not allowed to recover or reverse the losses.

Restoring impairment losses

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