When does ifrs allows reversal of impairment losses?

IFRS allows the reversal of impairment losses when there is an indication that the recoverable amount of an asset has increased since the last impairment was recognized. This is applicable under IAS 36, which outlines that the reversal should not exceed the carrying amount that would have been determined had no impairment loss been recognized. The reversal must also be assessed at each reporting date, ensuring that the asset is not overvalued.