Revaluation

May I confirm exactly what your post means?

Asset acquired cost $90m in 2011 (on what date and what’s the year end?)

At the date of acquisition the asset has an estimated useful life of 30 years

In 2012 (on what date in 2012?) the asset was impaired down to $75m (was the remaining useful life re-estimated at the date of the impairment?)

In 2013 (on what date in 2013), the asset was revalued upwards to $105m

For the financial statements for 2013, what will be the entries in the Profit or Loss Account, the Comprehensive Income Account and the Statement of Financial Position?

Is that a reasonable guess at the question you wished to ask?

Please complete the missing information and I’ll get back to you with an answer

Tarek, I’m not sure that I believe you! On what date was the asset acquired?

When you say “All dates in the end of year ” do you mean 31 December?

Ok, acquired 31.12.2011 for 90

Depreciate 90 / 30 for 2012 = 3

NBV at 31.12.2012 = 87

Revalue / impair by 12 through PnL to arrive at 75 as at 31.12.2012

Depreciate 75 / 29 for 2013 = 2.59

NBV at 31.12.2013 = 72.41

Revalue to 105. BUT reversal of impairment through PnL is limited to amount of previous impairment THROUGH PnL so only 12 can be credited to PnL

Carrying value therefore increased from 72.41 to 84.41 (72.41 + 12)

But value is 105 so 105 – 84.41 = 20.59 is credited to OCI and debited to asset.

Carrying value is now 105 as at 31.12.2013

OK?

You’re welcome!