On another note… Could somebody please explain to me the difference between revaluation losses and impairment losses are and how they would be accounted for under IFRS is?
From my understanding, if an assets carrying value is above FMV, then a loss is recorded against the income statement unless it's reversing a gain in which case it hits OCI to the extent of the gain and any further loss beyond the reversed gain gets recorded as a loss on the IS.
An impairment loss is also when an assets carrying value is above FMV, in which case the asset needs to be adjusted down to FMV. The gain is reversible to the extent of the initial write down…. in which case if the asset becomes valued even higher, it becomes a revaluation gain??
Is there even a difference or are they just interchangeable terms? I'm assuming they're not one and the same since becker goes to the length of mentioning both terms in the text and lectures but does not actually explain what the difference is.
.