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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › treatment of impairment loss reversal in cash flow
The impairment of an asset is reversed and there is gain on restating the carrying value. what will be the treatment of the gain in cash flow statement.
Hi,
It is a non-cash item that has gone through profit or loss so would be adjusted by reducing the operating profits under the indirect method of calculating cash generated from operations.
I don’t recall seeing something as challenging as this in a SCF question so I’d not worry too much about it,
Thanks
