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Asymmetric U.S. GAAP: Under U.S. GAAP, long-lived assets, such as real estate are reported on the...

Asymmetric U.S. GAAP:
Under U.S. GAAP, long-lived assets, such as real estate are reported on the balance sheet at the original purchase price of the asset. In the event that the value of a real estate becomes “impaired”—that is, the current market value of the real estate falls below its original purchase price and is unlikely to recover the lost value in the foreseeable future—the asset’s book value is written down to the lower current value and a loss is recorded on the firm’s income statement. Under no circumstances, however, can a firm write up the value of its real estate assets in the vent that current market value exceeds original purchase price. Discuss whether U.S. GAAP should be changed to allow a symmetric treatment of asset value increases and decreases. What are the implications of this asymmetry in the accounting treatment of assets (such as real estate) for U.S. financial statement users?

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losses if any. Answer: Summarized the information provided in the question; As per US GAAP: All fixed assets should be valuedas impairment (decrease) in the value of fixed asset should be debited impairment loss in income statement as per cost model

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