Which of the following statements regarding increases in the value of plant asse

Question

Which of the following statements regarding increases in the value of plant assets under U.S. GAAP and IFRS is true?

U.S. GAAP allows companies to record increases in the value of plant assets.

Under IFRS, an impairment increase beyond as asset's original cost is not recorded.

IFRS prohibits upward asset revaluations.

Under GAAP, a company can reverse an impairment and record that increase in income.

U.S. GAAP prohibits companies from recording increases in the value of plant assets.

U.S. GAAP allows companies to record increases in the value of plant assets.

Under IFRS, an impairment increase beyond as asset's original cost is not recorded.

IFRS prohibits upward asset revaluations.

Under GAAP, a company can reverse an impairment and record that increase in income.

U.S. GAAP prohibits companies from recording increases in the value of plant assets.

Explanation / Answer

U.S. GAAP prohibits companies from recording increases in the value of plant assets. However, IFRS permits upward asset revaluations. Keeping these statements in mind, the following statements regarding increases in the value of plant assets under U.S. GAAP and IFRS is true:

U.S. GAAP prohibits companies from recording increases in the value of plant assets.

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