plz help with this.
1-when an asset is revalued upward under ias 16 it goes to reval resv and oci right? so does that mean that we dr the asset with the increase and credit both the oci and the reval resv? doesnt that mean we end up with 2 credits? how will the accounts balance?
2- an amount is taken out from the reval resv and transferred into the retained earnings each year. - do i need to add this amount to the p&l?
3- do i also need to take out a certain amount from the oci as well each year? and if so, what am i supposed to do with it.
have been trying to understand this for the past couple of days and am at my wits end now. thank you
1-when an asset is revalued upward under ias 16 it goes to reval resv and oci right? so does that mean that we dr the asset with the increase and credit both the oci and the reval resv? doesnt that mean we end up with 2 credits? how will the accounts balance?
2- an amount is taken out from the reval resv and transferred into the retained earnings each year. - do i need to add this amount to the p&l?
3- do i also need to take out a certain amount from the oci as well each year? and if so, what am i supposed to do with it.
have been trying to understand this for the past couple of days and am at my wits end now. thank you
