[Excited_CPA]

Hi all,

I’m reading through the ninja notes and under Impairment, it says that impaired assets that recover value can’t be written back up once it’s written down.

I’m starting my MCQ’s through F1 and thought that assets can be written back up, but only up to the amount of impairment losses that were previously recorded.

So I’m just confused as to which was right? Or if they apply to different things?

Can you never write up assets after they’re impaired? Or can you write it back up to the amount of previous impairment losses?

Thanks in advance!

BEC 04/14/12 87
FAR 08/28/12 88
AUD 10/06/12 94
REG 02/09/13 91

[Lidis]

The impairment of tangible assets you have two options held for use and held for sale. If the assets is held for use and the asset is impair cannot write up again if is recovers. But, if the assets is held for sale and the asset is impaired can be write-up again if is recover.

[Anonymous]

I was looking through this and had the same question. As revenue stated above, there are different rules for held for use and held for sale. You're using Becker, right? If an asset is properly held for sale, by definition it will be classified on the income statement as discontinued operations. This is the where the rule comes in that you saw on page F1-23. If the asset is not held for sale and is held for use, like on page F2-22, restoration of a previous impairment loss is not allowed. For an asset held for sale/discontinued operations, an asset may be written back up but only to the extent that it was written down. You can take the example on F1-23 and apply it to the bottom right box on F2-22 and get the same result. IFRS allows the reversal of impairment losses so it is similar to how you would approach assets held for sale. I hope this helps because this understanding helped me.

[Author]

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