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IMPAIRMENT OF ASSETS/CGU ( PG 20 ON NEW NOTE)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IMPAIRMENT OF ASSETS/CGU ( PG 20 ON NEW NOTE)

Viewing 4 posts - 1 through 4 (of 4 total)
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  • September 26, 2016 at 6:01 pm #341792
    imaikop
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Good day. please it is stated in the note that ” impairment is when the CV falls below the RA”. please confirm the correctness as am used to reading that it is “when CV is higher than the RA”,

    This fact is followed in the worked example 5 (pg 120) where:

    CV = 40m
    FVLCTS = 36m
    VIU = 38m
    Impairment = 2m

    Thank you.

    imaikop

    September 26, 2016 at 9:56 pm #341826
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    I’ll double check the notes but yes you’re correct in that for there to be an impairment the carrying value has to be greater than the recoverable amount.

    Thanks

    October 3, 2016 at 8:26 pm #342335
    ajmal786
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Can a reversal in an Impairment loss be only to the extend to the CV of an asset had the impairment loss was not incurred?or the reversal could be more then loss i-e what if the recoverable amount gets even greater then the CV?

    October 5, 2016 at 8:28 pm #342496
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    Yes, we can only reverse the impairment to what its carrying value would have been. It cannot be increased any further.

    Thanks

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