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A revalued asset has accumulated revaluation surplus ₹14 lakh. Current impairment loss is ₹15.30 lakh. Identify the accounting treatment.
ADefer until next revaluation date
BCharge ₹14 lakh against revaluation surplus through OCI; remaining ₹1.30 lakh to P&L
CCharge ₹15.30 lakh entirely to P&L
DCharge ₹15.30 lakh entirely against revaluation surplus through OCI (creating a deficit)
Answer & Solution
Correct answer: B. Charge ₹14 lakh against revaluation surplus through OCI; remaining ₹1.30 lakh to P&L
Impairment of a revalued asset is treated as a revaluation decrease under Ind AS 16/38. It first absorbs the revaluation surplus for THAT same asset (OCI, here ₹14 lakh) and then the excess (₹1.30 lakh) goes to P&L.
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