If an Impairment Loss Recognised in Prior Periods for a Revalued

question 74

Multiple Choice

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.

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