AASB 116 prescribes that,if assets within the same class are revalued and some assets increased in value while others decreased in value:
A) the net decrement for the class of asset should be recognised as loss in the income statement.
B) the net increment for the class of asset should be credited to revaluation reserve.
C) the total increment for all assets in the same class that increased in value should be credited to revaluation reserve and total decrement for all assets in the same class of asset should be recognised as loss in the income statement.
D) All of the given answers are correct.

Question

Quizplus · Accepted Answer

AASB 116 requires that assets within the same class should be revalued together. If some assets within the same class have increased in value while others have decreased, the total increment for all assets that have increased in value should be credited to revaluation reserve, while the total decrement for all assets in the same class should be recognized as a loss in the income statement. Therefore, choice (C) is the correct option.

AASB 116 Prescribes That,if Assets Within the Same Class Are