CERTYNEX IFRS ACADEMY

A revalued intangible asset has a revaluation surplus with a credit balance of 20,000 in equity. At the year-end, its fair value decreases by 35,000. How is this decrease recognised?

35,000 in profit or loss; the revaluation surplus remains unchanged until the asset is derecognised.

20,000 in other comprehensive income and 15,000 in profit or loss.

35,000 in other comprehensive income, the revaluation surplus becoming a debit balance.

15,000 in other comprehensive income and 20,000 in profit or loss.