Instead of revaluation, it will be impairment based on “exit value” if annual revenue and profitability cannot justify the NBV. Investment should be based on forward looking future growth prospects instead of solely on book value. Asset is not liquid but borrowings have to be continually service and paid.

Correct if Company continues to report QR profit based on discounted cash flows. QR profitability must be maintained. If profit meagre/loss, impairment exercise will kick in accordingly based on MFRS accounting/auditing standards. Always the basis of impairment for PPE, inventories, receivables etc., where applicable. Professional valuation (ie. adjusted exit FV > NBV) to justify the position where impairment is not necessary based on IFRS/MFRS. Unless rules have changed as retired old man have not kept up with latest technical international standards.

Erm dont think too complex, simple logic, if you got piece of land and building 20years ago, and revalue today, will it be dropping of price by business not operated, for example zero business operation. Price will be higher than 20 years ago due to Inflation. They wont care what building you doing right now, they can buy it and convert it to shopping mall or anything else…

Not much to be complicated. Based on MFRS 116 and 136 you need to be impaired which Recoverable (Fair value) lower than Carrying Value (NBV). But impairment assessment only make when there is impairment indicator and Fair value will still needed Valuer they may need also to consider the PPE condition, age of PPE, future income generating, and Inflation.

Maybe 1st valuation : lose - they impaired
Then go to 2nd valuation: Profit - they reverse the impairment
Go to 3rd valuation: Profit - Revaluation reserve
4th valuation: Loss - offset the Revaluation researve

So you can see it. Market value or fair value can up or down.
But in time of lapse, inflation will pull all the land and building cost higher and higher due to depreciated value of money.

Precisely. If QR profitability cannot be maintained (are continuous high receivables collectible ?), land value will not depreciate but PPE (even buildings) will need to be impaired based on market and economic situation. When inflation and construction cost are both high, it is not an absolute certainty that building cost will be higher. Time will tell.

Both biggest Customer A and B over 12 months collectible receivable have fully settle on 1Q 2026 Next QR will still needed monitoring the Trade receivable of other customers.

Another thing is Land and building value wont be impaired just due to economic situation or profit lower. Most of the company make loss they still can sold their PPE to cover all the debts and liabilities.

Land and building value mostly determination by Land and building condition and Land and building market value which is “Recoverable amount”.

In Inflation due to most of the company using Cost model to record PPE, so when cost higher = Asset higher.

But inflation will increase construction cost to the current WIP construction project.