Query

TREATMENT

Impairment loss is to be set off first to the Revaluation reserve and balance left after such set off from revaluation reserve is to be transferred to SPL.

AMOUNT TO BE SET OFF

There can be two approaches to set off the impairment loss to the revaluation reserve.

1. Set off whole of the amount credited to revaluation reserve at the time of revaluation 

2. Set off with amount credited at the time of revaluation as reduced by additional depreciation

AS 28 allows both approaches... management may use either of these 2 approaches