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Sir , if on the balance sheet an asset is showing 2.3m (building) while the market value is 2.5m at the recent valuation , since there is no indication of impairment , should we live the asset at that 2.3m as no asset impaired should be written carried below its recoverable amount .
Why would you even think about changing from $2.3?
Market value indicates no impairment and the entity uses the cost model so … why even consider amending that $2.3 carrying value?
“as no asset impaired should be written carried below its recoverable amount .”
This rule concerns the situation where you’re considering an impairment – and we are NOT considering an impairment in your post
It must often be the case that, where entities apply the cost model, particularly on buildings, the market value of those buildings exceeds the carrying value
But that’s ok because we are applying the cost model
OK?
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