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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › revaluation model to cost model
Hi Mike,
What adjustments should the entity make if it switches from revaluation model to cost model for its PPE? It is a retrospective application, right? Where should the existing revaluation surplus go?
Reverse the entry that created it!
Dr Revaluation Reserve
Cr TNCA
Oh thought it was more complicated than that, thank you!
🙂
You’re welcome – but remember, you can only set the carrying value to what it would have been all along if you hadn’t opted for valuation model
Okay, I’ll keep that in mind 🙂
You don’t need to remember it for too long – it will all be over before you know it!