CERTYNEX IFRS ACADEMY

Coopérative Sylvaine revalues its class of production quotas. The North quota has a revaluation surplus with a credit balance of 40,000; the South quota has never been revalued upwards. At the year-end, only the fair value of the South quota falls, by 10,000. How is this decrease recognised?

In other comprehensive income, against the revaluation surplus of the North quota, which belongs to the same class.

In profit or loss, as the South quota has no revaluation surplus of its own.

It is not recognised, as the class as a whole remains above its cost.

Directly as a reduction of reserves, without passing through profit or loss.