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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,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.
ThanksYes, 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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