If an asset is carried under the revaluation model, the im?pairment loss is recognized in other comprehensive income (OCI) to the extent that it
A) there is a balance in the revaluation surplus account.
B) is expected that the impairment loss is temporary in nature.
C) reverses a balance in revaluation surplus for the same asset from a previous upward revaluation.
D) that the asset will not be sold or retired within the current accounting cycle.

Question

Quizplus · Accepted Answer

Under the revaluation model, if an asset previously revalued upwards experiences an impairment loss, the loss is first allocated to any existing revaluation surplus related to that asset. Only the excess of the impairment loss over the revaluation surplus (if any) is recognized in profit or loss. This approach ensures that the impairment loss reverses any previously recognized gains in the revaluation surplus for the same asset before impacting profit or loss.

If an Asset Is Carried Under the Revaluation Model, the Im?pairment