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I am reversing an impaired asset. The cost is $1500 with 10 years useful life. The asset was impaired after 2 years to $800. Therefore impairment is $500.
After year 3 the asset with a CA of $700 net deprecation, was revalued to $1350 (revaluation increase of $650
I will reverse the impairment to the ceiling had the asset not being impaired i.e. $1500 – 450 (3years depreciation) to $1050.
What do I do with the “extra” $300?
Would the treatment be different if the asset us carried at cost model instead of revaluation?
Thank you. All the best in the exam everyone!
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