ias 39 financial instruments

Hi Mike

For assets measured at fair value are they subject to impairment testing?

Also for pass paper 12/2005 Ambush: it states that IFRS 9 requires loans and receivables to be measured at amortised cost using interest rate method. what does this mean?

For part C.:
question:
Ambush is reviewing the accounting treatment of its buildings. the company uses revaluation model for its buildings. The buildings had originally cost $10m on 1/12/2003 and has useful economic life of 20yrs. they are being dep at straight line basis to an nil residual value. The buildings were revalued downwards on 30/11/2004 to $8m which was the buildings recoverable amount. At 30/11/2005 the value of the buildings had risen to $11m which is to be involved in the financial statments. The company is unsure how to treat this?

I dont understand the reversal of impairment. do you always divide the impairment loss from last year by the amount of years left?

in 2004 cost is $10m dep is $0.5 impairment loss is 1.5 and carrying amount is $8
in 2005 the cost is $8,i initally thought the depreciation would be the $ 0.5as this is straight line basis? Also I would thought there would be a gain of ( 11-7.58= 3.42 that goes to revaluation surplus which increases the OCI CR. I dont understand why they reverse the impairment from 2004 to 2005.

thanks alot for your help