IFRS allows companies to revalue plant assets to fair value. When an asset has increased in value, where is the account "Revaluation Surplus" reported?
A)On the income statement as part of income from continuing operations (other revenues and gains).
B)On the income statement as part of discontinued operations (discontinuing historical cost).
C)On the statement of financial position as part of accumulated comprehensive income (equity).
D)All of the choices are acceptable methods for the reporting of "Revaluation Surplus".

Question

Quizplus · Accepted Answer

Revaluation Surplus is reported on the statement of financial position as part of accumulated comprehensive income in equity. This is in accordance with IFRS requirements that all changes in fair value of assets should be reported in equity, rather than through the income statement.

IFRS Allows Companies to Revalue Plant Assets to Fair Value