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hi , I hope you are doing well .
so in the nca held for sale example in lectures. so in revaluation decrease of asset in PPE lectures we first transfer the impairment from Surplus after reserve transfer and then rest goes through P&L but in the held for sale example its said we take the impairement through p&L . so its bit confusing . can you help me here ?
or we only take the impairment through the surplus ( revaluation reserve ) if there was a balance in revaluaiton reserve from previous year. but like in example in the lecture there was revalutaion only just before sale of the asset so that we take through oci and we don’t net off the impairement from it .
its such a confusing stuff. please clear it for me. thank you veryyy much
For SBR don’t worry about reserve transfers.
IF NO POLICY OF REVALUATION
1. Compare CA and FVCTS
2. If FVCTS is less than CA, loss to P&LIF POLICY OF REVALUATION
1. Revalue asset – gain to OCI, loss to P&L (unless reversing earlier gain)
2. Compare new CA with FVCTS
3. If FVCTS less than CA, loss to P&L🙂
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