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revaluation gain

Nnaina9y ago
hello i want to be clear on the point that revaluation gain on investment property goes in p/l and for PPE goes to OCI is it talking during the year rev gains ..because when ppe is revalued we create rev surplus and respective increase in the asset ....then how come it goes to OCI..... ...
MikeLittleMikeLittleTutor9y ago#1
Because, when it goes to revaluation reserve, that's a change in equity, isn't it So to keep the reporting of the results (Statement of Profit or Loss combined with Statement of Comprehensive Income) in line with the disclosures of movements on the Statement of Changes in Equity, we need to show this increase in OCI Otherwise the movement in SOCIETY would simply appear as if by magic
Nnaina9y ago#2
i did not get it ..when revaluation surplus is created ,the double entry is asset dr rev-surplus -cr and revaluation gain on credit side ( in oci ),,,so what is the debit then
MikeLittleMikeLittleTutor9y ago#3
There isn't a debit for the entry in OCI That appearance in OCI is merely to explain the movement in SOCIETY
Nnaina9y ago#4
society ....stands for statement of comprehensive income ? AND ety ???
MikeLittleMikeLittleTutor9y ago#5
EquiTY "Statement Of Changes In EquITY"
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