Final answer:
Under US GAAP, impairments on assets cannot typically be reversed if their value recovers, while under IFRS, it is possible to reverse impairment losses in certain conditions.
Step-by-step explanation:
If the market value of an impaired asset recovers after an impairment has been recognized, accounting rules differ based on the regulatory framework in place. Under the US GAAP (Generally Accepted Accounting Principles), impairments cannot typically be reversed. Once an impairment loss is recognized, it cannot be restored to the asset's books even if the value of the asset recovers in the future.
However, under IFRS (International Financial Reporting Standards), if there is a clear indication that the impairment has decreased and the asset's recoverable amount has increased, the impairment loss recognized in prior periods can be reversed, subject to certain conditions.