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Hi,
For PPE revaluation model, impairment loss reversal cannot exceed carrying amount would have without the impairment.
For investment property or held for sale fair value model, impairment loss reversal is capped at previous recognised impairment loss.
Are these correct?
Thank youThen how is investment property’s impairment loss reversal? It does not capped at impairment loss previously recognised?
Thank you
There is no such thing as the impairment of IP. IAS 36 does not cover IP, IP is governed by IAS 40. The rules in IAS 40 state that the IP is revalued to FV at each reporting date with gain/losses through profit or loss. So if the value goes down it goes through profit or loss, and if it goes up it goes through profit or loss, there is no capping as it depends upon the fair value.
Thanks
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