CERTYNEX IFRS ACADEMY

Arbois Céramique measures its kilns at cost. A kiln impaired two years ago has a carrying amount of 140,000; without the loss, its carrying amount would be 200,000, net of depreciation. As the estimates have changed, its recoverable amount is now 230,000. Which treatment applies?

A reversal of 90,000 in profit or loss, to bring the kiln up to its recoverable amount.

A reversal of 60,000 in profit or loss; the excess of 30,000 is not a reversal.

A reversal of 60,000 in profit or loss and a reversal of 30,000 in other comprehensive income.

A reversal of 60,000 recognised directly in equity.