Impairment LLA vs. Revaluation Model

[Matori]

Long Lived Assets:
On page 433 it states that under IFRS any impairment write downs can be reversed up to the previous carrying value.
On page 640 it states that IFRS can use the Revaluation Model (vs. Cost Model which is applicable to GAAP) which allows for write up’s, up and beyond carrying value - recognizing revaluation surplus.
What am I missing??
Thanks!

 

[adq123]

Yup, that one got me confused too..
I think the essence of it is that IFRS can carry assets above historic cost.

 

[Matori]

adq123 Wrote:
——————————————————-
> Yup, that one got me confused too..
>
> I think the essence of it is that IFRS can carry
> assets above historic cost.
So I guess we then go by the revaluation model and allow assets to be carried above original carrying value - under IFRS.
Thanks. I thought maybe I was mixing up a couple things.

 

[Kiakaha]

hey – i looked this up because it confuses me too.
My interpretation is that under IFRS, inventory impairments can be reversed up to the original carrying value (but not higher), while long-lived assets can be booked using the revaluation model, which does allow them to be valued at higher than original cost.
can anyone confirm if this is right?

 

[C3Po]

Kiakaha, you are right. Under IFRS you have the option to use either cost method or revaluation or a combination of the 2 as long as assets within an asset class are accorded the same method. IFRS, allows for the asset to be market at higher than original cost.
If this is reversing a previous decrease in the asset value then to the amount that was previously reported as a loss on the IS will be reported as a gain and the remainder as Comprehensive Income and revaluation surplus and vice versa.

 

[Matori]

Thanks team.
It looks like the wording between readings was a little misleading.

 

[anish]

Ok, my understanding here is the when talking about inventory and historical cost model for long lives assets, the impairment can be reversed only up to the previous impairment. (and only in IFRS)
When using Revaluation model under IFRS, assets are presented at fair value and hence up and down both are allowed but treated differently.
Is that correct?