The cooperative Terres de Sénart accounts for farmland under the revaluation model. After a flood, the land had first been revalued to its fair value under IAS 16; the IAS 36 test had then shown an impairment loss, as its costs of disposal were not negligible and its value in use was below the revalued amount: 50,000 charged against its revaluation surplus and 30,000 in profit or loss. The drainage works carried out since then change the estimates of value in use, and the reversal to be recognised this year is 20,000 (given amount). Record the reversal.
- Prior loss charged against the revaluation surplus
- 50,000
- Prior loss recognised in profit or loss
- 30,000
- Reversal for the year
- 20,000