If an Impairment Loss Recognised in Prior Periods for a Revalued

question 12

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 in asset revaluation reserve.
• 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.
• E) None of the given answers

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Definitions:

Marginal Subcontracting Cost

The additional cost incurred for outsourcing work or production to a third party beyond the normal capacity.

Layoff Cost

Expenses related to the dismissal of employees, including severance pay and benefits.

Hiring And Training Cost

Expenses related to recruiting, hiring, and providing initial training for new employees, impacting an organization's investment in its workforce.

Regular Time Cost

The cost associated with employees' wages during their standard working hours, excluding overtime compensation.