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For example, financial year starts 01-Jan and ends on 31-Dec.
Company decides to sale the fixed asset on 01-Aug and held for sale.
Q1 – Shall company charge depreciation from 01-Jan to 31-Jul?
Q2 – Shall company assess the lower of carrying amount VS fair value less cost to sell on 01-Aug or 31-Dec?
Q2.1 – If the company assesses the lower of carrying amount VS fair value less cost to sell on 01-Aug then I believe it should reassess on 31-Dec and charge difference (only causing impairment but not the impairment reversal) in profit or loss… is it correct?
Q2 Both dates.
Q3 No. The impairment might be reversed, but you cannot go above the carrying amount at 31 July.