Accounting Standards 1-29 - Seth & Associates

Accumulated depreciation/
amortisation (4 years)
(800) (533) (1,333)
Impairment loss (200) (107) (307)
Carrying amount after impairment
loss
End of 20X6
Additional depreciation
0 1,360 1,360
(2 years)(1) - (247) (247)
Carrying amount 0 1,113 1,113
Recoverable amount 1,710
Excess of recoverable amount over
carrying amount
(1)After recognition of the impairment loss at the end of 20X4, T revised the depreciation charge for the Country
A identifiable assets (from Rs. 133.3 lakhs per year to Rs. 123.7 lakhs per year), based on the revised carrying
amount and remaining useful life (11 years).
A38. There has been a favourable change in the estimates used to determine the
recoverable amount of the Country A net assets since the last impairment loss was
recognised. Therefore, in accordance with paragraph 98 of this Statement, T
recognises a reversal of the impairment loss recognised in 20X4.
A39. In accordance with paragraphs 106 and 107 of this Statement, T increases the
carrying amount of the Country A identifiable assets by Rs. 87 lakhs (see Schedule
3), i.e., up to the lower of recoverable amount (Rs. 1,710 lakhs) and the identifiable
assets’ depreciated historical cost (Rs. 1,200 lakhs) (see Schedule 2). This increase
is recognised in the statement of profit and loss immediately.
Schedule 2. Determination of the depreciated historical cost of the Country A
identifiable assets at the end of 20X6 (Amount in Rs. lakhs)
End of 20X6 Identifiable assets
Historical cost 2,000
Accumulated depreciation (133.3 * 6 years) (800)
Depreciated historical cost 1,200
Carrying amount (Schedule 1) 1,113
Difference 87
Schedule 3. Carrying amount of the Country A assets at the end of 20X6 (Amount in
Rs. lakhs)
End of 20X6 Goodwill Identifiable assets Total
597