How is a revaluation loss on non-current assets accounted for?
A)Revaluation loss is booked to profit and loss.
B)Revaluation loss is booked to other comprehensive income.
C)Revaluation loss is booked to profit and loss or to other comprehensive income, depending on any pre-existing revaluation surplus.
D)Revaluation loss is not recognized in other comprehensive income.

Question

Quizplus · Accepted Answer

The treatment of revaluation loss on non-current assets depends on whether there is any pre-existing revaluation surplus. If there is a pre-existing revaluation surplus, the loss is booked to other comprehensive income up to the amount of the surplus. If the loss exceeds the surplus, the excess is booked to profit and loss. If there is no pre-existing revaluation surplus, the loss is booked directly to profit and loss.

How Is a Revaluation Loss on Non-Current Assets Accounted For