Impairment reversal under FRS 102

Impairment reversal under FRS102, how is this treated?

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I have an investment in a holding company that had been previously impaired in a prior year. This investment has now been reviewed and the value of this investment has now increased. Under IAS 36(Impairment of assets) I believe that it is possible to reverse this impairment so long as it doesn’t go above the initial investment amount. My understanding would be that the reversal would go through the p&l.  

My knowledge of FRS102 is not extensive and thus was wondering if anyone could provide further guidance on this issue. 

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By johngroganjga
29th Dec 2017 16:01

Yes that’s right.

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Replying to johngroganjga:
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By Aplange
30th Dec 2017 21:01

Hi John, thanks for help. One last question does this have any adverse effect on taxes of the company ? Happy new year and thanks in advance

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Replying to Aplange:
By johngroganjga
31st Dec 2017 06:46

The tax effect of the reversal will be the mirror image of the original impairment.

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