FRS 102 (1A) Investment property revaluations

Where to show impairment/revaluation in FA note

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Co is a pure investment property vehicle no other trade

Q1) If one property is impaired and one has upward revaluation - can I net or do I need to show both movements? 
I will track the cost/value of each so I know what the reserves relate to

Q2) Iris standard coding is giving impairment/ reversal of impairment and revaluation codes in both the Cost codes and Depreciation codes areas.  I would lean to show it in cost as the cost b/f code is described as cost/valuation. 

Any guidance please? 

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By CMP Accountant
02nd Jan 2020 17:39

Q1) I faced this recently and disclosed the net movement.

Q2) The way I have been dealing with the P&L effect of the fair value adjustment is to post to Iris code '410 - Gain/loss on revaln of assets'. This shows as a separate heading on the P&L.

Thanks (1)
Replying to CMP Accountant:
Caroline
By accountantccole
02nd Jan 2020 19:08

What BS codes do you use?

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Replying to accountantccole:
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By CMP Accountant
02nd Jan 2020 19:56

Investment property cost is 563/1

The revaluation is 563/5

I renamed code 970 to 'Non-distributable reserves'

Then renamed 968/5 and 970/5 both to 'Fair value transfer', and use these to transfer the gain/loss on revaluation (net of deferred tax) out of the regular P&L reserves to a separate code to keep track of them.

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Replying to CMP Accountant:
Caroline
By accountantccole
03rd Jan 2020 08:14

Brilliant - thank you

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John Toon
By John Toon
07th Jan 2020 11:14

You note that one property is impaired. Is this a permanent impairment? In which case it's coded to depreciation on balance sheet/P&L and should be shown separately in the FA note or is it just a FV fluctuation? In which case you're fine to net off any FV gains.

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