[swaykv]

After recognising an impairement loss for a disontinued operation, and bringing down the carrying value of a component, a subsequent increase in fair value at the time of disposal, a gain is recognised only to the extent of the impairment loss that was recognised earlier. What is the treatment for the remaining gain?

For example, if the BV= 10 and FMV= 7, an impairement loss will be 3 and the new carrying value will be 7.

Subsequently, during disposal if the sale is made for 11, then gain on sale = 11-7=4.

They say I can recognise a gain on disposal only to a maximum of the impairment loss previously recognised, which is 3. What do I do to the remaining 1?