If an impairment loss recognised in prior periods for a revalued asset no longer exists,IAS 36 Impairment of Assets requires a reporting entity to:
A)reverse the impairment loss to increase the asset to its recoverable amount.
B)reverse the impairment loss in profit and loss, only if the asset adopts the revaluation model.
C)treat this as a prior period adjustment and recognise the reversal as a gain.
D)ignore this information as previously written off assets are precluded from being reinstated.

Question

Quizplus · Accepted Answer

IAS 36 Impairment of Assets requires the reporting entity to reverse the impairment loss recognized in prior periods for a revalued asset if the impairment loss no longer exists. This reversal should increase the asset to its recoverable amount.

If an Impairment Loss Recognised in Prior Periods for a Revalued