REVALUATION DOWNWARDS: example 2

CChidera4y ago

Hi Chris, Would you kindly clarify why you’re saying that all of $3,850 in the revaluation reserve is going to be used?

P2-D2Tutor4y ago#1

Hi, Yes, there is a total impairment of 4,250 and the impairment of a previously revalued asset will go to the revaluation surplus first. So, given that there is a balance of 3,850 on the surplus this will be used in its entirety first in full and then the remainder is taken through profit or loss. Thanks

CChidera4y ago#2

thank you very much

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