In 2012, Bambung Corporation acquired production machinery at a cost of £416,000. In 2015, when accumulated depreciation was £110,000, Bambung reported an impairment loss of £78,000. Now, in 2019, the machinery has a book value of £193,000. The fair value less costs to sell of the machinery is £215,000 and its value in use is £195,000. During impairment testing, Bambung recognized the possibility of a reversal of the previous impairment loss. What amount, if any, should Bambung recognize as a reversal of impairment loss under IFRS?

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The Answer of In 2012, Bambung Corporation acquired production machinery at a cost of £416,000. In 2015, when accumulated depreciation was £110,000, Bambung reported an impairment loss of £78,000. Now, in 2019, the machinery has a book value of £193,000. The fair value less costs to sell of the machinery is £215,000 and its value in use is £195,000. During impairment testing, Bambung recognized the possibility of a reversal of the previous impairment loss. What amount, if any, should Bambung recognize as a reversal of impairment loss under IFRS?

In 2012, Bambung Corporation Acquired Production Machinery at a Cost