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hi sir,
would you mind telling me how to account for impairment loss after the classification of asset as non current asset held for sale in case of revalued assets when carrying value after revaluation is greater than fair value less cost to sell? should this impairment loss be recognised in a same way as revaluation decrease and debited to OCI or debited to profit and loss in which case what will be the impact in revaluation reserve as a result of revaluation gain prior to classification of asset as non current assets held for sale???
Before the asset is classified as held for sale it must be revalued if the company has a policy of revaluation. If there is a loss it will be charged against any existing revaluation reserve arising in respect of that asset. If there is a profit it will be credited to revaluation reserve.
After the asset has been classified as held for sale it will be carried at the lower of its carrying amount and fair value less cost to sell
Any subsequent loss on value of the assets will be charged to profit and loss account.
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