Final answer:
The restoration of an impairment loss is only permitted for assets that are being held for use or disposal (option B), according to International Accounting Standards. This reversal may occur if the estimates of the recoverable amount change for assets held for use, or if the fair value less costs to sell increases for assets held for disposal.
Step-by-step explanation:
The restoration of an impairment loss is a process in accounting where a previously recognized impairment loss is reversed on the statement of financial position. This situation occurs when there is a subsequent increase in the recoverable amount of an asset that had previously suffered an impairment loss.
In terms of which assets restoration of impairment loss is permitted for, the correct option is: B. is being held for use or disposal. According to International Accounting Standards (IAS 36), an impairment loss for assets held for use may only be reversed if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. For assets held for disposal, generally measured according to IFRS 5, impairment loss reversals may also occur if the fair value less costs to sell increases.
However, once an asset has been disposed of, it is no longer recognized in the statement of financial position, so there would be no basis for a reversal of impairment. Hence, options A, C, and D are not applicable for the restoration of impairment loss.