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Hello Sir
I know that there is a hierarchy for impairment loss:
1-Specific asset
2-goodwill(to nill)
3-other assets pro ratais there any hierarchy for reversal of impairment or not?
let me explain my question with asimple example:
there is a division which its carrying value is 25:
Goodwill 10
Land 15at the end of yr1 impaired BY for example $15m and we allocate is as follows:
goodwill 10-10=0
Land 15-5=10how should we record the reversal of $12m for the end of year 2?
I know that we are not permitted to reverse impairment of goodwill.
is there any hierarchy for reversal?
which is correct?
1- reverse $5m to the land FIRST and the remaining amount of $7m is not permitted for goodwill
(so total reversal is 5)
OR2-reversal of $10m is not permitted for goodwil FIRST and the remaining amount(ie $2m) is permitted for land.
(so total reversal is 2)thank you in advance
Hi,
Are you studying FR and SBR at the same time? It just seems odd that you are posting questions in both of the forums.
Thanks
Hello Sir
In page 30 of FR notes you have talked about hierarchy of impairment of a CGU which has a goodwill but i cannot find anything about Reversal of impairment specially when a CGU has a goodwill.
I wanted to ask you about hierarchy for reversal but i feel as you donot tell any thing about it in FR so i must ask it in SBR forum (which is the advanced paper of FR)- because i know that you are the tutor for both of them
i feel that if somebody else read my question in FR forum,he/she may feel that there are something in exam which are not mentioned in notes.so i ask the question here to avoid this feeling for others.
Also I searched your SBR forum and find this link(https://opentuition.com/topic/ias-36-impairment-5/) which i feel that it was related to my question and so i feel that it is better to ask my question in SBR forum.finally it is your decision as Tutor.
if i should ask the question in FR forum please tell me so i can transfer my question to that forum.thank you
Hi,
So you’ve still not answered the question, are you studying both at the same time?
Thanks
Hi,
If you are studying FR then please post the questions in that forum. I’ve answered the ones you’ve posted there, so please stop posting in SBR with similar questions.
Thanks
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