Page 342 - FR Integrated Workbook 2018-19
P. 342
Chapter 24
Example 3
Impairment reversal
On 1 January 20X3 an entity purchased a machine at a cost of $24,000. The
machine is to be depreciated on a straight-line basis over its estimated useful
life of eight years with nil residual value.
At 31 December 20X4 the machine is impaired by $4,500 with no change in its
estimated useful life or residual value.
At 31 December 20X6 the conditions which caused the impairment have
reversed and the recoverable amount of the machine is $16,000.
How will this be reflected within the financial statements?
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