Oil & Gas

Impairment Reversal — Proved Reserves Upgrade

Reversing part of a prior impairment charge following a significant reserve upgrade.

Account NameTypeDebit ($)Credit ($)
Oil & Gas Properties (Restored)Asset (+)40,000,000.00-
Impairment Reversal IncomeRevenue (+)-40,000,000.00

💡 Accountant's Note

Under IAS 36, impairment reversals are permitted when the recoverable amount subsequently increases. The reversal cannot exceed the original impairment amount. This is triggered by reserve upgrades, higher oil prices, or improved development plans.

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