Question: How can i do impairment reversal in this problem? E Date Particulars Debit Credit 30/06/18 Acc imp loss 5000 5000 revlau income Reversal of impairment
How can i do impairment reversal in this problem?
E

Date Particulars Debit Credit 30/06/18 Acc imp loss 5000 5000 revlau income Reversal of impairment loss and part of revaluation loss Workings 190000 Recoverable amount Carrying amount As recoverable amount is impairment losses is 175000 big carrying amount potential reversal of previous years Possible Ceiling on reversal of impairment losses Carrying amount had no impairment loss occurred in a prior year Under the revaluation model fair value at 30/06/2018 185000 175000 . Carrying amount at 30/06/2017 Potential reversal of impairment loss 10000 Workings 185000 Fair value 30/6/18 Carrying amount 30/6/18 Fair value is potential reversal of the previous years' impairment losses Higher so there is a revaluation entry required which will include . Total impairment losses recorded previously are 5000therefore reverse full impairment loss and the remainder is reversal of previous revaluation decrement. Hint The order of reversing impairment losses and previous years' revaluation adjustments is not important as any reversal of an impairment loss for a revalued asset must be treated as a revaluation increase as per AASB 116. Accordingly, reversals of impairment losses for assets under the revaluation model could include reversal of previous year's impairment losses together with reversal of previous year's revaluation expenses. Students should refer to AASB 136 para Carrying amount is calculated from the following ledger account balances Lang Accumulated impairment losses - Land 185000
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