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Hello,
I was wondering if you could clear up something I’m confused with in the solution.
On the property held for sale when a previously revalued asset is held for sale it should be revalued before hand?
Why is this revalued to just the fair value? I assumed it would be to the recoverable amount? I.e the value in use as this is higher?
If not surely it should be at least revalued to the fair value less cost to sell?
In the answer they revalued it up to OCI then impair it to the profit and loss, couldn’t this be moved to reval reserve?
Thanks in advance
Why would you value it using value in use when it specifically is not going to be used and it isn’t going to generate a stream of cash flows into the foreseeable future?
And why would you value it to resale value less costs to sell when that (upwards) valuation results in a profit / gain that has not yet been realised?
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