If an impairment loss recognised in prior periods for a revalued asset no longer exists,AASB 136 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

AASB 136 requires that if an impairment loss recognised in prior periods for a revalued asset no longer exists, the reporting entity should reverse the impairment loss to increase the asset to its recoverable amount. This is in line with the principle of revaluing assets to their current fair value, which may change over time.

If an Impairment Loss Recognised in Prior Periods for a Revalued