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On the panama question, please why was the revaluation loss still shown in OCI when it had been offset by previous gain. Wouldn’t that cause deducting it twice. Please clarify, thank you.
Hi,
As the previous gain had been taken to OCI on the upwards revaluation the subsequent reduction in value must then go to the same place, hence it being charged to OCI too.
We aren’t deducting anything twice, we are merely impairing the asset by using any unrealised gains held in reserves first, and if there is then anything above what is held within here the amounts go through profit or loss.
Thanks
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