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Dear lecturer,
Please advise me on the following scenario;
If an investment property is revalued upwards, ie, at the reporting date there was a revaluation surplus of $1000, the entries are;
Dr investment property 1000
Cr income statement revalution surpuse 1000My question is, do we have to show this in the statement of change of equities as revaluation surplus investment properties of $1000?
“My question is, do we have to show this in the statement of change of equities as revaluation surplus investment properties of $1000?”
Here’s an extract from the IASPLUS website on IAS 50 Investment Properties:
“Fair value model
Gains or losses arising from changes in the fair value of investment property must be included in net profit or loss for the period in which it arises”
So, in answer to your specific question, no, we do not show the gain on the revaluation of investment property held under the fair value model as a movement in statement of changes in equity
If the property is held under the cost model then … why are we revaluing it!
OK?
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