Session 3

1:

Reversal of a previous impairment loss

Point Impossible Ltd acquired some land in 2013 at a cost of $2.5 million. In 2014 it was

determined that the recoverable amount of the land was $2.0 million. In 2015 it was decided

to revalue the land to its fair value, which was then assessed as having increased to $2.8

million.

REQUIRED

Provide the journal entries to record the above movements in value