*How to Recognise and Account for Impairment Loss on a Revalued Asset – Powered by Taxmann.com | Practice* #taxmannpractice Clarifying how a company should recognise and account for impairment loss on a revalued asset under AS 28 and AS 10. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: ‣ 𝐈𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞 𝐑𝐞𝐜𝐨𝐠𝐧𝐢𝐭𝐢𝐨𝐧 – Under AS 28, impairment losses must be recognised immediately as an expense, except when the asset is carried at a revalued amount under AS 10 ‣ 𝐎𝐟𝐟𝐬𝐞𝐭 𝐀𝐠𝐚𝐢𝐧𝐬𝐭 𝐑𝐞𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐒𝐮𝐫𝐩𝐥𝐮𝐬 – For revalued assets, the impairment loss is initially adjusted against any existing revaluation surplus ‣ 𝐄𝐱𝐜𝐞𝐬𝐬 𝐋𝐨𝐬𝐬 𝐓𝐫𝐞𝐚𝐭𝐦𝐞𝐧𝐭 – If the impairment loss exceeds the revaluation surplus, the additional amount is charged directly to the Profit and Loss account For a detailed explanation of the provisions and the accounting treatment, visit: https://taxmann.social/FaIG7 𝘛𝘩𝘪𝘴 𝘤𝘰𝘯𝘵𝘦𝘯𝘵 𝘪𝘴 𝘣𝘳𝘰𝘶𝘨𝘩𝘵 𝘵𝘰 𝘺𝘰𝘶 𝘣𝘺 𝘛𝘢𝘹𝘮𝘢𝘯𝘯.𝘤𝘰𝘮 | 𝘗𝘳𝘢𝘤𝘵𝘪𝘤𝘦 #taxmannupdates #financialreporting #accountingstandards #companiesact #transparency