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Thank you for your last response.
Normally when you have a revaluation loss is it a deduction in the comprehensive statement of income or deduction in equity in the statement of financial position.
Also if we later have a revaluation surplus from another asset then do we combine the old loss and new surplus?
eg. 1. revaluation loss (asset 2) -25,000 then later 2. revaluation surplus (asset 1) 60,000
Many Thanks.
Revaluation gains and losses normally go through the comprehensive income section in the statement of comprehensive income (or at the end of the combined statement of comprehensive income when that is a combination of statement of profit or loss together with the statement of comprehensive income)
We don’t have a separate revaluation reserve for each separate asset that is being revalued – does that answer your second question?
Revaluation gains are credited to revaluation reserve but where an asset that has previously been revalued upwards by $10,000 (and that figure in included within a $55,000 revaluation reserve balance) and is now being revalued downwards by $12,000 (ignore the annual transfer from revaluation reserve to retained earnings), $10,000 will come out of the revaluation reserve but the extra $2,000 will be debited to profit or loss
OK?
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