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Why it is unfair to have different accounting treatment for revaluation surplus and revaluation deficit?
Can give me some suggestions??
ThanksI’m not sure how you mean neither “unfair” nor Different accounting treatment”
If there is a revaluation deficit, it is treated in exactly the same way as a previous revaluation surplus on that same asset – up to the level of the previous revaluation surplus
If that previous surplus is now used up by the later deficit that excess is written off to retained earnings but where else could you place the debit? You cannot have a debit balance in the revaluation reserve!
If there were no previous revaluation surplus and now we are faced with a revaluation deficit, again I ask the question “Where can you place the debit entry Dr ????? Cr Asset account”
Is that better?
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