CERTYNEX IFRS ACADEMY

An entity applies the revaluation model to an intangible asset. At a previous revaluation, a decrease in the value of this asset was recognised in profit or loss. At the following year-end, the asset's fair value increases. How is this increase recognised?

Entirely in other comprehensive income, the revaluation surplus being credited whatever the asset's history.

In profit or loss to the extent of the previous decrease reversed, then in other comprehensive income.

Entirely in profit or loss, like any change in the fair value of a revalued asset.

Directly in retained earnings, without passing through profit or loss or other comprehensive income.