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Hi,
I was doing the question called “Ghorse” (Q53 in the June 2012 BPP revision kit) and I was a bit confused at the answer.
I know that at the time of classifying the asset we first check if the asset is impaired and then measure it as lower of carrying value or FV less costs to sell.
But what about subsequently? I thought it was the same, but the revision kit answer remeasures it to FV. So do we then remeasure it to FV at each subsequent B/S date?And also, in that question it limits the revaluation to the previous impairment. But i thought we should only limit it to impairments incurred from the time of classification (but according to the question the asset had been impaired prior to classification)…
I’d really appreciate an answer coz I’m currently so confused!
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