If the asset acquired during the year and held under the revaluation model was impaired at year-end (and impairment expense was charged to SPL).
Next year, the asset was revalued. Will the revalution gain be fully credited to OCI? I mean, don't we take into consideration previous year impairments?
Thanks,
Ask the Tutor ACCA FR
Impairment
Found the asnwer:
• A reversal of an impairment of a non-revalued asset is recognised in profit or loss.
• A reversal of an impairment of a revalued asset is recognised as other comprehensive income
and included in the revaluation surplus.
If you'd like to add some comment, I'd appreciate.
Thanks
5y ago#2Yes, that's correct as to how you treat the impairment of a revalued asset. Try using the standard table that we've used in some of the lectures where assets are revalued to help as it makes it a bit easier.
There should be a date/narrative column, an historic cost column, a revalued amount column and then a revaluation reserve column.
Thanks
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