[nandrou]

The original example I gave also comes from my study text.

Yes, I agree, the SOFP should be technically split and debited as you described:
Dr Asset Account 5m
Dr Accumulated Depreciation Account 2m

The corresponding credit entries were shown in the study text as:
Cr P&L 2m
Cr Revaluation Reserve 5m

So my question in the transfer to investment property example, when you debit the SOFP entries as you described, why are there no corresponding credits as follows:
Cr P&L 47.5m
Cr Revaluation Reserve 100m

Where the credit to the P&L is a reversal of the 47.5m which had been previously booked as a depreciation expense in the P&L.

Just want to verify why in this instance the example doesn’t reverse the depreciation expense in the P&L, but puts it all through the reval. reserve?

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