A piece of land has been revalued annually at the year-end. An indicator of impairment was found on 30 June 2021. The impairment test confirmed impairment losses. The information about the land on 30 June 2021 is shown below. Fair Value $200,000 Carrying Amount $160,000 Recoverable Amount $100,000 What should be done for recording the events that occurred on 30 June 2021? i. Revaluation, then impairment ii. Impairment, then revaluation iii. Revaluation only iv. Impairment only

A piece of land has been revalued annually at the year-end. An indicator of impairment was found on 30 June 2021. The impairment test confirmed impairment losses. The information about the land on 30 June 2021 is shown below. Fair Value $200,000 Carrying Amount $160,000 Recoverable Amount $100,000 What should be done for recording the events that occurred on 30 June 2021? i. Revaluation, then impairment ii. Impairment, then revaluation iii. Revaluation only iv. Impairment only

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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