alleryStart learning →An impairment loss on a revalued asset is first set against:
ARetained earnings of the enterprise
BThe revaluation surplus for that same asset
CThe general reserve of the enterprise
DThe securities premium account
Answer & Solution
Correct answer: B. The revaluation surplus for that same asset
Such a loss is treated as a revaluation decrease and goes against that asset's own revaluation surplus up to the amount held.
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Related questions
An enterprise applying AS 17 discloses impairment losses by:A revalued asset's market value basis and negligible disposal costs mean the asset is:For a small and medium-sized company, value in use may be measured by:Impairment of deferred tax assets is dealt with under:Disclosing key assumptions is:If recoverable amount is value in use, a material loss disclosure includes:A class of assets under AS 28 means a grouping of assets of:AS 28 disclosures of impairment losses are required for each: