IFRS Notes

Impairment loss


IAS 36-pr59
Impairment loss is (1)-(2)
(1) carrying amount
(2) recoverable amount

Carrying amount is reduced to recoverable amount.

IAS 36-pr60
Impairment loss is recognised in profit or loss,
except for (3)
(3) revalued asset

For revalued asset,
impairment loss is treated as (4)
(4) revaluation decrease under IAS 16

IAS 36-pr61
For revalued asset,
impairment loss is recognised
in other comprehensive income,
up to balance of revaluation surplus.


IAS 16-pr39, 40
Revaluation surplus

Increase in carrying amount after a revaluation
(1) Revaluation surplus is recognised in other comprehensive income
(2) Revaluation surplus is accumulated in equity under separate heading

Decrease in carrying amount after a revaluation
(1) Recognised in profit or loss
(2) If revaluation surplus has credit balance,
reduce revaluation surplus, first

If the increase is a reversal of previous decrease
which was recognised in profit or loss,
recognise such increase in profit or loss.


IAS 16-pr39, 40
When the asset is derecognised,
revaluation surplus in equity is transferred to retained earnings.