BCZ108 IAS 36 requires that an impairment loss on a revalued asset should be recognised as an expense in the income statement [IAS 1 Presentation of Financial Statements (as revised in 2007) required an entity to present all income and expense items in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income). In April 2024 the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements and carried over these requirements in IAS 1 to IFRS 18.] immediately, except that it should be recognised directly in equity [As a consequence of the revision of IAS 1 (revised 2007) an impairment loss is recognised in other comprehensive income. The IASB carried over these requirements in IAS 1 to IFRS 18.] to the extent that it reverses a previous revaluation on the same asset.

BCZ109 Some argue that, when there is a clear reduction in the service potential (for example, physical damage) of a revalued asset, the impairment loss should be recognised in the income statement.