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ill simplify the case:
1st : TA impaired 80-60= 20 (Impairment loss) right!
Snd: TA was test for impairment after three years and the recovrable amount is now worth 90 M
SO to calculate the impairment: 90-60 so the difference in impairment is
30-20=10 (reversal of impairment)
Now the standared said IA cannt be revalued into carrinf amount that is higher that value has the asset not impaired originally !
i.e carrying amount before impairment is 70 (given) and the new revalued amount is 90 .Now the treatment is that reversal goes to P&L the 10M and the carring amount of the asset should stay at 70 .
hope this would help .iam confused your case is about a loan given to x and x is liable to pay the principle plus a certian agreed interest . first the revenue comes from the loan is to be treated as other receivanle or othe rincome and shouldnt be offset against the revenue coming from ordinary course of business .
Second concern the loan interest it shouldnt deffered and consumed over the loan period is should be treated as revenue in P&L once received so no time value of money is concerned .
Hope this will help .
Regards,
HishamThe exam wasn’t so specific in question 1 part a . The majority of us when planning to pass p3 depends on this part as it attain 20 to 25 marks .it was a lengthy senario pertain lots of info. I used pestle analysis combined with company strategic capabilities such as it’s unique resources and core competencies in line with company mission and culture. I ran out of time and had panic sice I spent 2 hours working on the first question! This left me with one hour to put all my knowledge in other 2 questions. Overall the exam was not logic in terms of senarios mentioned given that examiner leave us the choice to choose the model we want means a lot of time pressure to figure it ! Hope that I’ll got the passing rate:)