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Dear teacher,
i can’t understand the answer about impairment loss , why it is 25k,
how to get this answer. thanksHi
the question specifies that, with reference to the asset which needs to be impaired by 35, the revaluation reserve includes 25 related to that asset.
The impairment entry is therefore to debit revaluation reserve with 25 ( which is in the reserve and which relates to the asset ) and the surplus impairment of 10 will coume off the Statement of Income as an expense
Thank you very much , Now I understand. 25 is reserve the balance of revaluation surplus, and another 10 is in statement of income as expense. Thanks again
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Hi,
why the 10 comes off the Statement of Income as an expense rather than as a deficit on revaluation of investments in OCI ..
Because I tend to combine Statement of Income with Statement of Comprehensive Income. I should then refer to the combined Statement as Statement of Comprehensive Income.
You are correct, the answer should refer to Statement of Comprehensive Income
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thanks
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