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Accounting treatment IAS 16 change from revaluation model back to cost model

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  • April 21, 2020 at 5:23 pm
    Accounting treatment IAS 16 change from revaluation model back to cost model 2
    krlegaj
    Participant

    Hi,

    I have practice question regarding change of accounting policy-back from revaluation to cost model. What should be done with revaluation surplus and comparative periods?

    What should be accounting postings for this situation?

    Thank you very, very much in advance!

    Kind regards

    April 22, 2020 at 7:58 am
    Accounting treatment IAS 16 change from revaluation model back to cost model 3
    Stephen Widberg
    Moderator

    Most unusual – most exam questions would say don’t because a change in accounting policy has to make FS more relevant and reliable. So that’s my short answer!

    But, I suppose you would do PPA and restate comparatives. What does model answer say?

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