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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Impairment of assets held under revaluation method
Hi,
let’s assume that on 1/1/2010 an asset was purchased for 20,000 (straight-line method, 10 years) and it was held under revaluation method.
By the end of 2010, it was impaired to 15,000. Where will the impairment of 3,000 be recognised – in P&L or in OCI?
and if by the end of 2011, the asset is revalued to 30,000, where will be the revaluation gains be recognised and at what amounts?
Thanks a lot.
Hi,
The impairment is recognised against any gains held in reserves first (OCI). If is subsequently revalued then it will follow the same revaluation rules as normal, gains through OCI.
Thanks