The gain on impairment loss reversal of an asset which is recognized in profit or loss is computed asthe difference between the recoverable amount on date of reversal and the carrying amount on date of reversalthe difference between the recoverable amount on date of reversal and carrying amount of the asset had no impairment loss been recognized previouslythe difference between the carrying amount of the asset had no impairment loss been recognized previously and the carrying amount of the asset on the date of reversalthe difference between the carrying amount of the asset had no impairment loss been recognized previously and the recoverable amount on the date of the previous impairment testing.

The loss of impairment is recognized in the income account and the reversal of the impairment loss…

Answered: The gain on impairment loss reversal of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The gain on impairment loss reversal of an asset which is recognized in profit or loss is computed as
1. the difference between the recoverable amount on date of reversal and the carrying amount on date of reversal
2. the difference between the recoverable amount on date of reversal and carrying amount of the asset had no impairment loss been recognized previously
3. the difference between the carrying amount of the asset had no impairment loss been recognized previously and the carrying amount of the asset on the date of reversal
4. the difference between the carrying amount of the asset had no impairment loss been recognized previously and the recoverable amount on the date of the previous impairment testing.

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