- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
1. In IAS 16, it says that if one asset is revalued, all assets in that class must be revalued.
What is it mean by that class ?
Is it possible to provide short examples ?
Cuz i cant seem to find it in the google as well2. Actually what is the purpose of revaluation reserve ?
Hi,
A class of asset is Land & Buildings, or Plant & Machinery, so if one building is revalued then all of the buildings must be revalued.
The revaluation reserve is an unrealised gain that is recognised through other comprehensive income, so its purpose is to show that we have a potential future profit on the revalued item but this will only be realised at some point in the future, i.e. on disposal.
Thanks
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.