Any changes to share holder equity resulting from Revaluation is recorded as OCI and does not reflect in Income statement but under Other Comprehensive Incomes. Any loss due to revaluation is recorded as expense in Income statement.
Sir I was just revising and I have one doubt regarding impairment example, for tata motors although it is a non cash expense but the loss is still there as they bought jlr for higher of its worth and as the impairment loss is in the income statement it will affect the net income and the loss will be directly reducing the equity and eps so will it not reduce share price?
Also I know that after the next financial reports tata motors will show higher profit in income statement due to less amortication so then share prices can increase. so must we not sell the shares after knowing the loss and buy it afterwards?
Impairment losses are permanent under IFRS but in India according to IND 36 AS Impairment reversal is possible with specific clauses, "Reversal of Impairment Loss: An impairment loss can be reversed if there is a change in the estimates used to determine the recoverable amount. However, the reversal is limited to the amount that would have been recognised if no impairment loss had been recognised in prior periods."
sir, please upload the last part of the Income statement (diluted EPS, ) Chack Playlist.
earnings per share video is missing. Will be very glad if it could be added
Thankyou so much for all these free lectures
Good
Any changes to share holder equity resulting from Revaluation is recorded as OCI and does not reflect in Income statement but under Other Comprehensive Incomes. Any loss due to revaluation is recorded as expense in Income statement.
EPS part awaited!
As there are already many comments, Sir have you uploaded the EPS video?
thanks sir!
sir , where is EPS part ???
Sir I was just revising and I have one doubt regarding impairment example, for tata motors although it is a non cash expense but the loss is still there as they bought jlr for higher of its worth and as the impairment loss is in the income statement it will affect the net income and the loss will be directly reducing the equity and eps so will it not reduce share price?
Also I know that after the next financial reports tata motors will show higher profit in income statement due to less amortication so then share prices can increase. so must we not sell the shares after knowing the loss and buy it afterwards?
impairment losses can be reversed.
Impairment losses are permanent under IFRS but in India according to IND 36 AS Impairment reversal is possible with specific clauses, "Reversal of Impairment Loss: An impairment loss can be reversed if there is a change in the estimates used to determine the recoverable amount. However, the reversal is limited to the amount that would have been recognised if no impairment loss had been recognised in prior periods."
@@dalalharsha got it now thanks buddy!
thankyou, sir.