The Rosewood Resort and the Blaze Mountain Resort are located in the same four-season resort area. Rosewood is a publicly traded company that follows IFRS. Blaze Mountain, owned by a small group of Canadian private investors, follows ASPE. Both companies use the cost model when accounting for property, plant, and equipment and have a December 31 year end. From 2009 to 2012, both resorts experienced a period of decline where the number of visitors to the area dwindled. Because of this, at the end of the 2012 fiscal year, each company recorded an impairment loss of $1 million on its buildings because the recoverable amount of these assets did not exceed their carrying amount at that time.
Since 2012, the number of visitors to each resort has risen steadily. Resort bookings have dramatically increased because the country's largest developer of destination resorts has opened a ski village, chalets, lodges, and a golf resort in the area. As a result, by the end of 2015, the recoverable amount of the buildings of each resort now exceeds their carrying amount, as shown below, along with other pertinent information.

Instructions
(a) At the end of 2015, can Rosewood reverse some or all of the impairment loss recorded in 2012? If so, how much?
(b) At the end of 2015, can Blaze Mountain reverse some or all of the impairment loss recorded in 2012? If so, how much?
(c) Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for both companies based on the amounts provided above. Recalculate each ratio after taking into account any impairment loss reversals determined in parts (a) and (b), if applicable.
(d) Based on the ratios calculated in part (c), after taking into effect any impairment loss reversals, which company is performing better? Why?
(e) If different accounting standards produce different account balances on financial statements, what additional information may users want to have in order to evaluate the nature and performance of long-lived assets?

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Rosewood $2,250,000 180,000 9,000,000 5,000,000 7,000,000 Blaze Mountain Net sales Profit Average total assets Carrying amount of buildings Recoverable amount of buildings What carrying amount of buildings would have been had the $2,500,000 200,000 10,000,000 6,000,000 6,500,000 impairment not occurred in 2012 5,800,000 6,700,000