what is the difference between a revaluatoin decrease and impairment loss? are they the same thing?
reversal on revaluatoin:
if reverse a previous revaluation decrease, the amount for previous decrease (treated for expense at that time) should be treated as income, balance should be treated as revaluation reserve, right?
reversal on impairment (IAS36):
pls refer to BPP page 92, example
In which case, the asset can not be revalued to a carrying amount that is higher than its value would have been if the asset had not been impair originally.
it means if my total asset is 140M(goodwill 40m, patent 20m, TA80m), impaired to 60M (TA 60m); current value=90m, TA is 70m if the previous impairment did not take place, why I can only revalue my TA to 70m, goodwill and patent are still zero? where is the balancing 20m? (90m-70m)
please explain to me, thank you!
reversal on revaluatoin:
if reverse a previous revaluation decrease, the amount for previous decrease (treated for expense at that time) should be treated as income, balance should be treated as revaluation reserve, right?
reversal on impairment (IAS36):
pls refer to BPP page 92, example
In which case, the asset can not be revalued to a carrying amount that is higher than its value would have been if the asset had not been impair originally.
it means if my total asset is 140M(goodwill 40m, patent 20m, TA80m), impaired to 60M (TA 60m); current value=90m, TA is 70m if the previous impairment did not take place, why I can only revalue my TA to 70m, goodwill and patent are still zero? where is the balancing 20m? (90m-70m)
please explain to me, thank you!
