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So I have a question :
Two buildings are revalued.
Building A – is revalued UP by 150
Building B – is revalued DOWN by 35In a previous year they were also both revalued up so creating a revaluation surplus already :
£40 related to precious revaluation of A
£20 relates to revaluation of BIn the question they have ALREADY Cr other income £115.
Which needs adjusting … But how is it done?
Should 150 be credited to revaluation surplus and not credit to other income or does other income need adjusting to 150?
Is revaluation surplus included in OCI in the PoL ?
Is the revaluation gain and loss in the OCI ??
Is revaluation surplus to same figure that should be in OCI?Thank you
I’m sooooo confusedHi,
The best way to think about it is based on each individual building.
Building A – the revaluation increase is taken in full through OCI @ 150
Building B – the revaluation decrease is first taken through OCI against the previous revaluation increase, so a reduction of 20 (giving a net increase of 130 = 150 – 20). The remaining 15 is taken through profit or loss.
So if they have already credited OCI with 115 then we need to do the following:
CR OCI 15 (to get the 115 they’ve already done to the 130 that it should be)
DR SPL 15 (as they’ve not done this)Hope this helps.
Thanks
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