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Hello Mike
Hope you are fine.My question is about how to treat with impairment loss for an ”Asset Held For Sale” (AHFS).
Am I right with the following ?
Just BEFORE recognition of the asset as an AHFS, we should test the asset for impairment. If there is an impairment loss, then we should recognise this impairment loss as an expense is P&L or deduct the revaluation surplus if the asset was already revalued.
AFTER recognition of the asset as an AHSF, if there was any impairment loss, then we should recognise it as an expense in P&L EVEN if there is a revaluation surplus, i.e. we are NOT allowed to deduct the impairment loss from revaluation surplus anymore after the recognition of the asset as an AHFS !
Thank you in advance
Kind RegardsThat seems to be ok with me but it has always intrigued me why it shouldn’t go against the revaluation reserve. It’s a mystery!
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