Difference between impairment and downward revaluation

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Hemant Pandit (Querist)
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20 February 2014 What is the difference between impairment and downward revaluation of assets??

How both are different??

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 February 2014 for impairment there is practically the carrying amount is less then recoverable amount

for downward rev its is done after valuer certifies after examining the technical part of assets.

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Hemant Pandit

Hemant Pandit (Querist)
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20 February 2014 not clear sir ... can u please elaborate??

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 February 2014 but have u read AS 28? then onlu u can understand what is carrying amount and recoverable amount.

Hemant Pandit

Hemant Pandit (Querist)
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20 February 2014 i know these concepts.. the purpose of both impairment as per AS 28 and downward revaluation seems same?? isnt it? in both the cases you reduce the value of asset??
because you understand that your asset are not worth the carrying value..

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 February 2014 at every bal sheet u need to check whether there is any impairment of asset or not...but not in case of downward revaluation.

Hemant Pandit

Hemant Pandit (Querist)
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20 February 2014 my question is if on a particular balance sheet date my assets are not worth its book value can downward revaluation be considered in place of impairment?? why management will for impairment and all, when we can do downward revaluation also??

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 February 2014 But without valuation how will you come to know that assets are not worth??unless u dont value it with the help of valuer????

which is done for finding out its value only to find out whether assets are impaired or not...

for down ward revluation we dont appoint valuer and find its value on particluar date...

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