Hi, please help me.
I am aware that I need to take the revaluation increase to the Statement of changes in equity.
If a decrease occours - where does it go in the financial statement?
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Question on Revaluation of assets and loss on revaluation - SOCIE
3y ago#1Hi,
It depends if the asset has previously been revalued or not.
If not revalued then the loss goes straight through profit or loss.
If it has been revalued then the loss will go through OCI/revaluation surplus as that is where the original gain will have been recognised. We can only recognise the loss up to the amount that is held in the surplus and any excess goes through profit or loss.
So, if the loss is 110 and 100 is in the surplus then 100 goes through OCI and 10 through profit or loss.
Thanks
Ok thank you.
Do you know if there are any question examples for this?
I appreciate your assitance.
3y ago#3There aren't any that spring to mind other than the ones that will be in the study texts.
It might appear in a section A or B question but unlikely in section C, so don't lose too much sleep about it.
Thanks
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