Good day!
Relatively new to Opentuition and grateful for the resources and support offered here.
With respect to F7 (Financial Reporting), understand any excess depreciation as a result of revaluation upwards requires a Dr Revaluation Reserve Cr Retained Earnings, in order to account for the reduced profit available to shareholders. Wondering what would the treatment be whereas for the below scenarios?
1) A revaluation downward instead of upward - do we account for "lower depn, higher profit" in our Equity accounts?
2) When it is solely a change in estimate useful life instead of revaluation (ref PPE depn video), do we also apply the same treatment, touching the Equity accounts to account for the "increased depn/ reduced profit"?
Greatly appreciate any advice! :)