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Can anyone help me understand this?
In Wiley Test Bank for FAR, MCQ FA-0134 under Fixed Assets section, (but this question is referring to intangible assets) …
This is my understanding – Only IFRS uses the revaluation model, and under the revaluation model, impairment losses go to the income statement, and reversals of impairment losses are, first, applied as gains to the income statement – UP TO the amount of the original loss. Any additional gains go to OCI.
Why is my understanding different from the answer solution?
It says that under the revaluation model, both gains AND losses go to OCI, but I learned it differently.
What am I missing???
FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!Study resources:
Becker
Wiley test bank
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