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I’m somewhat confused by the idea that, once an asset has suffered an impairment loss, it can cannot be revalued to an amount higher than its value had it not been impaired originally. That is, its depreciated carrying value.
It seems to contradict IAS 16 where an asset can be revalued and if it has increased in value, this increase is credited to a revaluation reserve.
Can anyone shed some light on this?
Why an asset can’t be revalued after previous impairment??
Only Goodwill can not be revalued, but other assets – can.
Thanks for your reply sangria but I know that an asset can be revalued.
I’m asking about a previously IMPAIRED ASSET being revalued to amount HIGHER than it’s DEPRECIATED CARRYING VALUE if it hadn’t been impaired.
It’s my understanding that that isn’t allowed. Is that not the case?Do you remember: if you revalue an asset, you should firstly reverse all impairment previously recognised, and then add revaluation.
So I understand that that IS allowed 🙂
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