Maximum Amount of Impairment Loss Reversal

Financial Reporting

Hi sir, Which of the below is the maximum amount of impairment loss reversal? 1. Impairment losses previously recognized (as mentioned in the notes) 2. Carrying amount not considering impairment loss (-) Carrying amount considering impairment loss (as done in the illustration) Video Details ------------- Ind AS - CA Final Ind AS 36 Impairment of Assets #31. Illustration 19

Ruthvik Reddy Adala

CA Final

★ 5K+

19-Sep-24 20:34

514

Answers (3)

Best Answer

1.maximum impairment loss is restricted to impaiment loss previousy recognised. ie 15 (75-60) 2.whereas impairment loss computed . 5(25-20) carrying amount without impairment 25 carrying amount with impairment 20 hence, the impairment loss reversed is lower of (1 or 2).

Sugathan P.R

CA Final

★ 8K+

23-Sep-24 08:34

The amount after reversal of impairment cannot exceed the original carrying amount less depreciation. Maximum reversal cannot exceed previous impairment. So we need to check both condition.

CA Suraj Lakhotia

Admin

23-Sep-24 11:22

Sugathan P.R

Explained well.

CA Suraj Lakhotia

Admin

23-Sep-24 11:22