Tan plc owns an available-for-sale equity investment that cost 2 million. At 31 December 2008 the investment

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Tan plc owns an available-for-sale equity investment that cost £2 million. At 31 December 2008 the investment was recognised on the balance sheet at £2.1 million.
At 31 December 2009 the investment had declined in value to £1.5 million; however, Tan plc did not assume that the investment had impaired. By 31 December 2010 the investment had not recovered in value (it was still worth £1.5 million) and Tan plc concluded that its decline in value was permanent and it had impaired.
In June 2011 (after the 2010 financial statements had been issued) circumstances changed and the investment recovered in value to £2.2 million.
Required:
Show the accounting entries you would expect Tan plc to make for each December year-end from 2009 to 2011.
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Financial Accounting and Reporting

ISBN: 978-1292080505

17th edition

Authors: Barry Elliott, Jamie Elliott

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