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CalculationAdvancedVariant — group VG.IAS36.000504Published

Question · Impairment of a revalued asset

A hotel of Miravel, measured under the revaluation model, has just been revalued to its fair value at the reporting date and is carried at 750,000. Its disposal would involve costs of disposal of 45,000. Falling occupancy reduces its value in use, which is its recoverable amount, to 712,000. The balance of the revaluation surplus relating to this hotel is 85,000. What part of the loss goes to other comprehensive income, and what part to profit or loss?

Revalued carrying amount of the hotel (fair value at the reporting date)
750,000
Costs of disposal
45,000
Recoverable amount of the hotel (value in use)
712,000
Revaluation surplus of the hotel
85,000
Your answer

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