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In 20X3 Angry revalued at $360,000 a plot of land which had been purchased in 20X1 for $300,000 and recognised a revaluation gain of $60,000.
In 20X4 Angry revalued to $130,000 a second plot of land which had been purchased for $100,000 in 20X2 and recognised a further revaluation gain of $30,000.
In 20X5 Angry wishes to write down the carrying amount of the first plot of land from $360,000 to $260,000 because of an impairment loss due to changes in market prices.
There have been no other movements on the revaluation surplus.
Match the amounts to be recognised in profit or loss and other comprehensive income in 20X5 for the impairment loss.?
Hi,
I’m not here to answer questions outright for you. You need to be able to attempt the question first yourself and then look to ask questions on what you cannot do.
If you have a go at this question and let me know what you’re struggling with then I can help. Just remember that any impairment on a revalued asset will go to OCI first before hitting profit or loss.
Thanks.
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