Revaluation of Investment Property

ASalawi sayed4y ago

Hi Sir, Question 31 in Kaplan FR kit (2020-2021) ,(I could not copy the question) The question is requiring some adjustment to retained earnings . Why They included the revaluation of investment property as an adjustment in retained earnings, I think here because it is an investment property. Sir, please correct me if I am wrong .As per my understanding the revaluation should come as a separate line in equity as other components in equity right ? not within retained earnings. Thanks

PP2-D2Tutor4y ago#1

Hi, No, when we revalue an IP at the reporting date the gains/losses go through profit or loss, hence the adjustment through retained earnings. They do not go through other comprehensive income. Thanks