WLC purchased a non$-$current asset on $1$ January $20$X$1$ at a cost of $$30,000.$ At that date, the

asset had an estimated useful life of ten years. WLC does not revalue this type of asset, but

accounts for it on the basis of depreciated historical cost. At $31$ December $20$X$2,$ the asset was

subject to an impairment review and had a recoverable amount of $$16,000.$ At $31$ December

$20$X$5,$ the circumstances which caused the original impairment to be recognised have reversed

and are no longer applicable, with the result that the recoverable amount is now $$40,000.$

Required:

A$.$ Explain, with supporting computations, the impact on the financial statements of the two

impairment reviews.

B$.$ Explain the recognition and measurement of reversal of impairment loss.