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IFRS 5, NCA held for sale- REVALUATION SURPLUS

This topic has 4 replies, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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March 21, 2021 at 10:18 am #614870
tinkle
- Topics: 49
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Hello, my doubt is related to example 1……
Why did Sir Chris deduct the impairment loss from Revaluation surplus? (1500-300=1200) Impairment loss should go to P&L right? and not as an OCI reduction?

Kindly clarify and explain where am I going wrong.
March 23, 2021 at 3:08 am #615000
tinkle
- Topics: 49
- Replies: 42
Ohh, really disappointed that BPP says this is the contradiction between IAS 16 and IFRS 5 as the impairment loss goes to P&L
March 23, 2021 at 9:59 am #615019
Stephen Widberg
Moderator
- Topics: 10
- Replies: 2531
Dear Tinkle

I’ve done some more research and humbly apologise.

The answer in the back of our notes is correct, but, having listened to the lecture and looked at the standard, BPP are correct.

So:

The revaluation goes to OCI
The 300 goes to P&L

As BPP say there is a conflict between IAS 16 and IFRS 5. The embarrassing thing is that I think I taught the BPP author many moons ago.

I will get that bit of the lecture re-recorded

Kind regards

Steve
March 24, 2021 at 10:46 am #615116
tinkle
- Topics: 49
- Replies: 42
Kindly don’t apologize Sir, We are already very grateful for the invaluable help and resources OT offers.

And wow that’s so impressive that you’ve taught the BPP author!!

Thanks a million for the clarification again.
March 25, 2021 at 3:29 pm #615194
Stephen Widberg
Moderator
- Topics: 10
- Replies: 2531
My pleasure.

🙂
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