Don't come across many of these
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?
Replies (5)
Please login or register to join the discussion.
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.
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.
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.