relaluation and impairment-what are the entries

Former user15y ago

we got asset at cost 12, for 10 years deprec.after 1 year revaluated to 13,next year impaired to 8.
when we calculating we got 1 year revaluation- goes to OCI of 2.2
2. year reversal on impairment 2/ difference between real and historical NBV
and another impairment of 1.6, means total impairment of 3.6
My question is what are the the entries for 1 st and 2nd year
and whether this 1.6 is split into 0.2 /2.2-2 total revaluation- reversa/ and 1.4 and how.
thanks
if somebody can help me with the opposite example- impairment and revaluation

MikeLittleTutor15y ago#1

Hi

Please give me the question reference so I can see the full question written out.

Thanks

Xxitrumisd15y ago#2

confusing with your q.
as my understand, there are entries for 2 years in order here:
1. Yr1: Dr. PPE/Cr. OCI: 2.2
2. Yr2:
Note: CV = 13 - 13/9 = 11.6
IP to 8 -> loss: 3.6 --> reverse 2.2 and 1.4 will go to PL
hence: Dr. OCI: 2.2; Dr. P/L: 1.4/Cr. PPE: 3.6

MikeLittleTutor15y ago#3

Can't see much wrong with that - it seems to not be in contradiction with elen's post

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