- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
I have a question: I don’t understand what the journal entry should be when recording an impairment if:
1) the asset was held at cost
2) the asset was revalued.
Please help!
Thank you in advance
DO NOT POST YOUR QUESTIONS TWICE!
1) Dr statement of profit or loss expense
Cr TNCA2) Dr Revaluation reserve
Cr TNCAIn that second one, we can only debit the revaluation reserve with as large an amount as is already in the revaluation reserve
If the impairment is greater than previous revaluation surpluses not so far treated as realised, then any excess will be debited to statement of profit or loss
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.