Hi,
The query relates to (SBR) chapter number 11( NCA held for sale), in example 1(Namibia) there is a revaluation surplus of 1500 on 30 April and also an impairment on the same date as the asset is reclassified to held for sale. Why are we not reducing the revaluation surplus and instead recognizing the impairment in the profit and loss?
Thanks in advance.
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Impairment Transferred to SOPL instead of revaluation surplus.(SBR)
3y ago#1IFRS 5 requires a 2 step approach.
Step 1 - Revalue with gain to OCI
Step 2 - compare new CA with FVCTS - loss to P&L
Impact is that selling costs always go to P&L
Identical treatment to sale of financial assets (equities) where there has been an election to treat as FVOCI
But a difficult rule!
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