CERTYNEX IFRS ACADEMY

Orlenne Ltd accounts for land under the revaluation model; the direct costs that a disposal would trigger are negligible. Which conclusion does IAS 36 allow it to draw?

The land falls outside the scope of IAS 36, since it is already measured at fair value at each revaluation.

The land requires a full value in use calculation at each reporting date, without exception.

The land remains within the scope of IAS 36, but the risk of it being impaired is low.

Any future decline in the fair value of the land will necessarily be recognised under IAS 36.