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Revaluation of Investment Property

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Revaluation of Investment Property

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • November 21, 2021 at 5:08 pm #641269
    alawi sayed
    Participant
    • Topics: 152
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    • ☆☆☆

    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

    November 27, 2021 at 7:35 am #641741
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6443
    • ☆☆☆☆☆

    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

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