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In IAS 16
If there is a gain on revaluation say 2000.
there was a previous revaluation loss related to that asset which was charged to PnL of 500, and also impairment loss has happened of 500 which was also charged to pnl.so when revaluation gain of 2000 will happen, we will reverse the Revaluation loss taken to PnL before and rest we will take it to Revaluation surplus.
my question apart from revaluation loss which we reversed from PnL, can the previous impairment loss related to that asset which we have charged to PnL….. also can that be reversed with the Revaluation Gain. So after reversing the (revaluation + impairment) loss rest amount will be taken to Revaluation Surplus (OCI)
IAS 16
repairs cost are expense out from PnL.
But if the sentence says the asset got damaged and repairs need to be done to make it usable again……that repair cost can be capitalized.
@sguha said:
In IAS 16If there is a gain on revaluation say 2000.
there was a previous revaluation loss related to that asset which was charged to PnL of 500, and also impairment loss has happened of 500 which was also charged to pnl.so when revaluation gain of 2000 will happen, we will reverse the Revaluation loss taken to PnL before and rest we will take it to Revaluation surplus.
my question apart from revaluation loss which we reversed from PnL, can the previous impairment loss related to that asset which we have charged to PnL….. also can that be reversed with the Revaluation Gain. So after reversing the (revaluation + impairment) loss rest amount will be taken to Revaluation Surplus (OCI)
A revaluation loss and impairment loss are the same thing, so the answer to your question is yes.
@sguha said:
IAS 16repairs cost are expense out from PnL.
But if the sentence says the asset got damaged and repairs need to be done to make it usable again……that repair cost can be capitalized.
No, the repairs will just bring the asset to its previous operating capacity and so are expensed.
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