Revaluation decreases

Learning objectives

• Determine the portion of a revaluation decrease charged against the revaluation surplus and the portion recognised in profit or loss.L2, L3
• Record a revaluation decrease.L3

Normative references

• IAS 16 §40Decrease in value in profit or loss, except to the extent of any credit balance in the revaluation surplus in respect of the same asset, which is charged to OCI.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• An entity applies the revaluation model to the class 'land'. A plot of land is carried at {carrying_amount} and its own revaluation surplus amounts to {revaluation_surplus}. At the new revaluation date, its fair value is {fair_value}. Record the revaluation entries.L3