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Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Hello,
Shouldn’t we first offset the impairment against the revaluation surplus (as taught in the previous chapter) and only take any excess to the p/l?
Sir, i thought we are using 13,900 as carrying amount and not 15,400 which is the fair value
Please do reply.
Thank you Sir
Watch Previous lecture, revaluation model PPE are revalued to fair value at the date the PPE is classified as held for sale. An gain goes through OCI. This fair value becomes the carrying amount that is then compared to fair value less cost to sell. Any difference is impairment through profit or loss.
So true
it means the Fair value less cost sales will always be used as against CV. because that will always be lower than CV
We assumption that this example, IFRS 5 uses Revaluation model. If IFRS 5 uses cost model, so use 13.9 as Initial cost of IFRS 5.
But then I do not understand the phrase „ Non-current asset held for sale is valued at the lower of the carrying value and fair value less costs to sell.“ which comes from the notes…
As this is following the revaluation model, the notes specify that the asset should be immediately revalued before being classified as HFS. Therefore, the 15,400 is now considered as the new carrying value as 13,900 resulted from a previous revaluation that currently did not apply to the asset anymore. Please correct if i am wrong
Sir, the value of NCA HFS is lower of carrying value and fair value less cost to sell….
I thought the carrying value here is 13,900.
Expecting your answer and clarification.
Thank you