Revaluation decrease

Hi Chris,

I just finished watching your lecture on revaluation decrease as part of Chapter 5.

2 questions please:

1) based on the example, If the b/f reservation reserve at 31 Dec 2015 was at $0, does this mean all of the $4,250 revaluation loss would be reported as an impairment expense in the Profit or Loss statement?

2) following the same example, if we were required to show the financial statements as of 31 Dec 2016, since there is now an adjusted depreciation expense for the year (of $8,000 / 7 years remaining asset life), is there any transfer of excess (in this case a “loss”) depreciation from Revaluation reserve to Retained earnings? (I assume this should be a No because essentially this would result in less retained earnings and therefore an ‘unfair’ dividend payout to shareholders?)

Much appreciated in advance!

Regards,
Tim