Hestine measures its warehouses under the revaluation model. At the reporting date, a warehouse has just been revalued to its fair value under IAS 16: its revalued carrying amount is 300,000. Its disposal would involve costs of disposal of 18,000 and its recoverable amount, equal to its value in use, is 284,000. The revaluation surplus relating to this warehouse amounts to 10,000. Allocate the impairment loss between other comprehensive income and profit or loss.
- Revalued carrying amount (fair value at the reporting date)
- 300,000
- Costs of disposal
- 18,000
- Recoverable amount (value in use)
- 284,000
- Revaluation surplus of the warehouse
- 10,000