Workpapers

Workpaper template

WorkpaperIAS 16 — Property, Plant and EquipmentL3 · L4

Revaluation

7 missions11 sections to document60 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

For an asset of a class measured under the revaluation model, enter the carrying amount before revaluation and the fair value from the valuation report, deal with accumulated depreciation, then allocate the difference between profit or loss and other comprehensive income, taking into account the existing revaluation surplus and previous decreases of the same asset. The annual transfer of the surplus to retained earnings is documented in the dedicated section. One workpaper per asset and revaluation date.

11 sections · 38 blocks · 11 calculations · 6 entries

IAS 16 §29
IAS 16 §31
IAS 16 §34
IAS 16 §35
IAS 16 §36
IAS 16 §37
IAS 16 §38
IAS 16 §39
IAS 16 §40
IAS 16 §41
IAS 16 §77

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

7 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Hotels: the revaluation model over three years

Case tasks documented here

Calculate the accumulated depreciation to be eliminated at 31 December 20X3.
Calculate the revaluation differences at 31 December 20X3 and their split between profit or loss and other comprehensive income.
Calculate hotel A's depreciation from 20X4, the annual transfer of the realised surplus and the balance of A's surplus at 31 December 20X5.
Calculate the accumulated depreciation to be eliminated at 31 December 20X5.
Calculate the revaluation differences at 31 December 20X5 and their split.
What is the impact of these entries on the 20X5 financial statements, and what must be disclosed in the notes?

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
4,000,000
Accumulated depreciation before revaluation
NumberRequired
300,000
Carrying amount before revaluation
NumberRequired
3,700,000
Fair value at the revaluation date
NumberRequired
4,440,000
Existing revaluation surplus for this asset
NumberRequired
0
Previous decreases of this asset recognised in profit or loss
NumberRequired
0
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
300,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
4,440,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
0
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
740,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
740,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
740,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
Depreciation based on the original cost
Number
Amount transferred for the period
Calculation
0
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Account Debit Credit
Accumulated depreciation 300,000
Asset (gross carrying amount) 300,000
Increase in other comprehensive income
Entry
Account Debit Credit
Asset (gross carrying amount) 740,000
Revaluation (other comprehensive income) 740,000
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Debit Revaluation (other comprehensive income) ← Decrease charged against the revaluation surplus ; Credit Asset (gross carrying amount) ← Decrease charged against the revaluation surplus
Decrease in profit or loss
Entry
Debit Revaluation loss ← Decrease in profit or loss ; Credit Asset (gross carrying amount) ← Decrease in profit or loss
Transfer of the revaluation surplus
Entry
Debit Revaluation surplus ← Amount transferred for the period ; Credit Retained earnings ← Amount transferred for the period

Account	Debit	Credit
Accumulated depreciation	300,000
Asset (gross carrying amount)		300,000

Account	Debit	Credit
Asset (gross carrying amount)	740,000
Revaluation (other comprehensive income)		740,000

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

Gross carrying amount = carrying amount + accumulated depreciationPass
Entry balancesPass
Entry balancesPass
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated

Assets: 740,000
Liabilities: 0
Profit or loss: 0
OCI: 740,000
Equity: 740,000

File and entity

Hotels: the revaluation model over three years

Case tasks documented here

Calculate the accumulated depreciation to be eliminated at 31 December 20X3.
Calculate the revaluation differences at 31 December 20X3 and their split between profit or loss and other comprehensive income.
Calculate hotel A's depreciation from 20X4, the annual transfer of the realised surplus and the balance of A's surplus at 31 December 20X5.
Calculate the accumulated depreciation to be eliminated at 31 December 20X5.
Calculate the revaluation differences at 31 December 20X5 and their split.
What is the impact of these entries on the 20X5 financial statements, and what must be disclosed in the notes?

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
2,400,000
Accumulated depreciation before revaluation
NumberRequired
180,000
Carrying amount before revaluation
NumberRequired
2,220,000
Fair value at the revaluation date
NumberRequired
2,035,000
Existing revaluation surplus for this asset
NumberRequired
0
Previous decreases of this asset recognised in profit or loss
NumberRequired
0
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
180,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
2,035,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
0
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
185,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
185,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
Depreciation based on the original cost
Number
Amount transferred for the period
Calculation
0
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Account Debit Credit
Accumulated depreciation 180,000
Asset (gross carrying amount) 180,000
Increase in other comprehensive income
Entry
Debit Asset (gross carrying amount) ← Increase in other comprehensive income ; Credit Revaluation (other comprehensive income) ← Increase in other comprehensive income
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Debit Revaluation (other comprehensive income) ← Decrease charged against the revaluation surplus ; Credit Asset (gross carrying amount) ← Decrease charged against the revaluation surplus
Decrease in profit or loss
Entry
Account Debit Credit
Revaluation loss 185,000
Asset (gross carrying amount) 185,000
Transfer of the revaluation surplus
Entry
Debit Revaluation surplus ← Amount transferred for the period ; Credit Retained earnings ← Amount transferred for the period

Account	Debit	Credit
Accumulated depreciation	180,000
Asset (gross carrying amount)		180,000

Account	Debit	Credit
Revaluation loss	185,000
Asset (gross carrying amount)		185,000

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

Gross carrying amount = carrying amount + accumulated depreciationPass
Entry balancesPass
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesPass
Entry balancesNot evaluated

Assets: -185,000
Liabilities: 0
Profit or loss: -185,000
OCI: 0
Equity: -185,000

File and entity

Hotels: the revaluation model over three years

Case tasks documented here

Calculate the accumulated depreciation to be eliminated at 31 December 20X3.
Calculate the revaluation differences at 31 December 20X3 and their split between profit or loss and other comprehensive income.
Calculate hotel A's depreciation from 20X4, the annual transfer of the realised surplus and the balance of A's surplus at 31 December 20X5.
Calculate the accumulated depreciation to be eliminated at 31 December 20X5.
Calculate the revaluation differences at 31 December 20X5 and their split.
What is the impact of these entries on the 20X5 financial statements, and what must be disclosed in the notes?

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
1,600,000
Accumulated depreciation before revaluation
NumberRequired
120,000
Carrying amount before revaluation
NumberRequired
1,480,000
Fair value at the revaluation date
NumberRequired
1,480,000
Existing revaluation surplus for this asset
NumberRequired
0
Previous decreases of this asset recognised in profit or loss
NumberRequired
0
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
120,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
1,480,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
0
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
Depreciation based on the original cost
Number
Amount transferred for the period
Calculation
0
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Account Debit Credit
Accumulated depreciation 120,000
Asset (gross carrying amount) 120,000
Increase in other comprehensive income
Entry
Debit Asset (gross carrying amount) ← Increase in other comprehensive income ; Credit Revaluation (other comprehensive income) ← Increase in other comprehensive income
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Debit Revaluation (other comprehensive income) ← Decrease charged against the revaluation surplus ; Credit Asset (gross carrying amount) ← Decrease charged against the revaluation surplus
Decrease in profit or loss
Entry
Debit Revaluation loss ← Decrease in profit or loss ; Credit Asset (gross carrying amount) ← Decrease in profit or loss
Transfer of the revaluation surplus
Entry
Debit Revaluation surplus ← Amount transferred for the period ; Credit Retained earnings ← Amount transferred for the period

Account	Debit	Credit
Accumulated depreciation	120,000
Asset (gross carrying amount)		120,000

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

Gross carrying amount = carrying amount + accumulated depreciationPass
Entry balancesPass
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Hotels: the revaluation model over three years

Case tasks documented here

Calculate the accumulated depreciation to be eliminated at 31 December 20X3.
Calculate the revaluation differences at 31 December 20X3 and their split between profit or loss and other comprehensive income.
Calculate hotel A's depreciation from 20X4, the annual transfer of the realised surplus and the balance of A's surplus at 31 December 20X5.
Calculate the accumulated depreciation to be eliminated at 31 December 20X5.
Calculate the revaluation differences at 31 December 20X5 and their split.
What is the impact of these entries on the 20X5 financial statements, and what must be disclosed in the notes?

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
Accumulated depreciation before revaluation
NumberRequired
Carrying amount before revaluation
NumberRequired
Fair value at the revaluation date
NumberRequired
Existing revaluation surplus for this asset
NumberRequired
Previous decreases of this asset recognised in profit or loss
NumberRequired
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
120,000
Depreciation based on the original cost
Number
100,000
Amount transferred for the period
Calculation
20,000
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Debit Accumulated depreciation ← Accumulated depreciation eliminated ; Credit Asset (gross carrying amount) ← Accumulated depreciation eliminated
Increase in other comprehensive income
Entry
Debit Asset (gross carrying amount) ← Increase in other comprehensive income ; Credit Revaluation (other comprehensive income) ← Increase in other comprehensive income
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Debit Revaluation (other comprehensive income) ← Decrease charged against the revaluation surplus ; Credit Asset (gross carrying amount) ← Decrease charged against the revaluation surplus
Decrease in profit or loss
Entry
Debit Revaluation loss ← Decrease in profit or loss ; Credit Asset (gross carrying amount) ← Decrease in profit or loss
Transfer of the revaluation surplus
Entry
Account Debit Credit
Revaluation surplus 20,000
Retained earnings 20,000

Account	Debit	Credit
Revaluation surplus	20,000
Retained earnings		20,000

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

Gross carrying amount = carrying amount + accumulated depreciationNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Hotels: the revaluation model over three years

Case tasks documented here

Calculate the accumulated depreciation to be eliminated at 31 December 20X3.
Calculate the revaluation differences at 31 December 20X3 and their split between profit or loss and other comprehensive income.
Calculate hotel A's depreciation from 20X4, the annual transfer of the realised surplus and the balance of A's surplus at 31 December 20X5.
Calculate the accumulated depreciation to be eliminated at 31 December 20X5.
Calculate the revaluation differences at 31 December 20X5 and their split.
What is the impact of these entries on the 20X5 financial statements, and what must be disclosed in the notes?

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
4,440,000
Accumulated depreciation before revaluation
NumberRequired
240,000
Carrying amount before revaluation
NumberRequired
4,200,000
Fair value at the revaluation date
NumberRequired
3,350,000
Existing revaluation surplus for this asset
NumberRequired
700,000
Previous decreases of this asset recognised in profit or loss
NumberRequired
0
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
240,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
3,350,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
0
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
850,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
700,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
150,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
120,000
Depreciation based on the original cost
Number
100,000
Amount transferred for the period
Calculation
20,000
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Account Debit Credit
Accumulated depreciation 240,000
Asset (gross carrying amount) 240,000
Increase in other comprehensive income
Entry
Debit Asset (gross carrying amount) ← Increase in other comprehensive income ; Credit Revaluation (other comprehensive income) ← Increase in other comprehensive income
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Account Debit Credit
Revaluation (other comprehensive income) 700,000
Asset (gross carrying amount) 700,000
Decrease in profit or loss
Entry
Account Debit Credit
Revaluation loss 150,000
Asset (gross carrying amount) 150,000
Transfer of the revaluation surplus
Entry
Account Debit Credit
Revaluation surplus 20,000
Retained earnings 20,000

Account	Debit	Credit
Accumulated depreciation	240,000
Asset (gross carrying amount)		240,000

Account	Debit	Credit
Revaluation (other comprehensive income)	700,000
Asset (gross carrying amount)		700,000

Account	Debit	Credit
Revaluation loss	150,000
Asset (gross carrying amount)		150,000

Account	Debit	Credit
Revaluation surplus	20,000
Retained earnings		20,000

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

Gross carrying amount = carrying amount + accumulated depreciationPass
Entry balancesPass
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesPass
Entry balancesPass
Entry balancesPass

Assets: -850,000
Liabilities: 0
Profit or loss: -150,000
OCI: -700,000
Equity: -850,000

File and entity

Hotels: the revaluation model over three years

Case tasks documented here

Calculate the accumulated depreciation to be eliminated at 31 December 20X3.
Calculate the revaluation differences at 31 December 20X3 and their split between profit or loss and other comprehensive income.
Calculate hotel A's depreciation from 20X4, the annual transfer of the realised surplus and the balance of A's surplus at 31 December 20X5.
Calculate the accumulated depreciation to be eliminated at 31 December 20X5.
Calculate the revaluation differences at 31 December 20X5 and their split.
What is the impact of these entries on the 20X5 financial statements, and what must be disclosed in the notes?

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
2,035,000
Accumulated depreciation before revaluation
NumberRequired
110,000
Carrying amount before revaluation
NumberRequired
1,925,000
Fair value at the revaluation date
NumberRequired
1,925,000
Existing revaluation surplus for this asset
NumberRequired
0
Previous decreases of this asset recognised in profit or loss
NumberRequired
185,000
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
110,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
1,925,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
0
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
Depreciation based on the original cost
Number
Amount transferred for the period
Calculation
0
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Account Debit Credit
Accumulated depreciation 110,000
Asset (gross carrying amount) 110,000
Increase in other comprehensive income
Entry
Debit Asset (gross carrying amount) ← Increase in other comprehensive income ; Credit Revaluation (other comprehensive income) ← Increase in other comprehensive income
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Debit Revaluation (other comprehensive income) ← Decrease charged against the revaluation surplus ; Credit Asset (gross carrying amount) ← Decrease charged against the revaluation surplus
Decrease in profit or loss
Entry
Debit Revaluation loss ← Decrease in profit or loss ; Credit Asset (gross carrying amount) ← Decrease in profit or loss
Transfer of the revaluation surplus
Entry
Debit Revaluation surplus ← Amount transferred for the period ; Credit Retained earnings ← Amount transferred for the period

Account	Debit	Credit
Accumulated depreciation	110,000
Asset (gross carrying amount)		110,000

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

Gross carrying amount = carrying amount + accumulated depreciationPass
Entry balancesPass
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Hotels: the revaluation model over three years

Case tasks documented here

Calculate the accumulated depreciation to be eliminated at 31 December 20X3.
Calculate the revaluation differences at 31 December 20X3 and their split between profit or loss and other comprehensive income.
Calculate hotel A's depreciation from 20X4, the annual transfer of the realised surplus and the balance of A's surplus at 31 December 20X5.
Calculate the accumulated depreciation to be eliminated at 31 December 20X5.
Calculate the revaluation differences at 31 December 20X5 and their split.
What is the impact of these entries on the 20X5 financial statements, and what must be disclosed in the notes?

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
1,480,000
Accumulated depreciation before revaluation
NumberRequired
80,000
Carrying amount before revaluation
NumberRequired
1,400,000
Fair value at the revaluation date
NumberRequired
1,520,000
Existing revaluation surplus for this asset
NumberRequired
0
Previous decreases of this asset recognised in profit or loss
NumberRequired
0
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
80,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
1,520,000
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
0
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
120,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
120,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
0
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
120,000
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
Depreciation based on the original cost
Number
Amount transferred for the period
Calculation
0
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Account Debit Credit
Accumulated depreciation 80,000
Asset (gross carrying amount) 80,000
Increase in other comprehensive income
Entry
Account Debit Credit
Asset (gross carrying amount) 120,000
Revaluation (other comprehensive income) 120,000
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Debit Revaluation (other comprehensive income) ← Decrease charged against the revaluation surplus ; Credit Asset (gross carrying amount) ← Decrease charged against the revaluation surplus
Decrease in profit or loss
Entry
Debit Revaluation loss ← Decrease in profit or loss ; Credit Asset (gross carrying amount) ← Decrease in profit or loss
Transfer of the revaluation surplus
Entry
Debit Revaluation surplus ← Amount transferred for the period ; Credit Retained earnings ← Amount transferred for the period

Account	Debit	Credit
Accumulated depreciation	80,000
Asset (gross carrying amount)		80,000

Account	Debit	Credit
Asset (gross carrying amount)	120,000
Revaluation (other comprehensive income)		120,000

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

Gross carrying amount = carrying amount + accumulated depreciationPass
Entry balancesPass
Entry balancesPass
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated
Entry balancesNot evaluated

Assets: 120,000
Liabilities: 0
Profit or loss: 0
OCI: 120,000
Equity: 120,000

Inputs

Asset revalued
TextRequired
Class of property, plant and equipment the asset belongs to
TextRequired
Effective date of the revaluation
DateRequired
Gross carrying amount before revaluation
NumberRequired
Accumulated depreciation before revaluation
NumberRequired
Carrying amount before revaluation
NumberRequired
Fair value at the revaluation date
NumberRequired
Existing revaluation surplus for this asset
NumberRequired
Previous decreases of this asset recognised in profit or loss
NumberRequired
Treatment of accumulated depreciation
ChoiceRequired
Eliminated against the gross carrying amount / Proportionate restatement
The entries shown follow the elimination method; under proportionate restatement, split the change between gross carrying amount and accumulated depreciation (review point).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Accumulated depreciation at the revaluation date

Calculations

IAS 16 §35

Accumulated depreciation eliminated
CalculationRequired
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated gross carrying amount
CalculationRequired
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation
Restated accumulated depreciation
CalculationRequired
Gross carrying amount before revaluation ; Accumulated depreciation before revaluation ; Fair value at the revaluation date ; Treatment of accumulated depreciation

Allocation of the revaluation difference

Calculations

IAS 16 §39IAS 16 §40

Increase in carrying amount
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in other comprehensive income
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Increase in profit or loss (reversal of a previous decrease)
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in carrying amount
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease charged against the revaluation surplus
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Decrease in profit or loss
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss
Revaluation surplus after the revaluation
CalculationRequired
Carrying amount before revaluation ; Fair value at the revaluation date ; Existing revaluation surplus for this asset ; Previous decreases of this asset recognised in profit or loss

Transfer of the surplus to retained earnings

Calculations

IAS 16 §41

Depreciation based on the revalued amount
Number
Depreciation based on the original cost
Number
Amount transferred for the period
Calculation
Depreciation based on the revalued amount ; − Depreciation based on the original cost

Journal entries

Entries

Elimination of accumulated depreciation
Entry
Debit Accumulated depreciation ← Accumulated depreciation eliminated ; Credit Asset (gross carrying amount) ← Accumulated depreciation eliminated
Increase in other comprehensive income
Entry
Debit Asset (gross carrying amount) ← Increase in other comprehensive income ; Credit Revaluation (other comprehensive income) ← Increase in other comprehensive income
Increase in profit or loss (reversal)
Entry
Debit Asset (gross carrying amount) ← Increase in profit or loss (reversal of a previous decrease) ; Credit Reversal of a previous decrease ← Increase in profit or loss (reversal of a previous decrease)
Decrease charged against the revaluation surplus
Entry
Debit Revaluation (other comprehensive income) ← Decrease charged against the revaluation surplus ; Credit Asset (gross carrying amount) ← Decrease charged against the revaluation surplus
Decrease in profit or loss
Entry
Debit Revaluation loss ← Decrease in profit or loss ; Credit Asset (gross carrying amount) ← Decrease in profit or loss
Transfer of the revaluation surplus
Entry
Debit Revaluation surplus ← Amount transferred for the period ; Credit Retained earnings ← Amount transferred for the period

Model and frequency

Judgment

IAS 16 §29IAS 16 §31IAS 16 §34IAS 16 §36IAS 16 §37IAS 16 §38

Measurement model of the class
JudgmentRequired
Cost model / Revaluation model, entire class
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Frequency: does the carrying amount remain close to fair value?
JudgmentRequired
Material difference: revaluation required / No material difference
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion: revalued amount, effect in profit or loss and in other comprehensive income
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §77

Classes stated at revalued amounts
ChecklistRequired
- Effective date of the revaluation
- Whether an independent valuer was involved
- Carrying amount under the cost model
- Revaluation surplus and its changes

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References