IFRS 5Chapter 3Lesson 2
Write-down on classification and limited reversal
Step 1 of 9Learning objectives
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When fair value less costs to sell is below the carrying amount, a loss is recognised in profit or loss; a later increase gives a gain, within the limit of the cumulative loss.
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Learning objectives
- Calculate and record the loss due to measurement at the lower amount.
- Apply the reversal cap: the cumulative loss.
- Record the entries for reclassification, loss and reversal.