How is revaluation of non-current assets accounted for?
A)Revaluation surplus is always booked to profit and loss.
B)Revaluation loss is booked to other comprehensive income.
C)Cumulative revaluation loss is booked to profit and loss.
D)Revaluation surplus is not recognized in other comprehensive income.

Question

Quizplus · Accepted Answer

DRevaluation surplus is recognized in other comprehensive income and not in profit and loss, which contradicts option A and aligns with option D. Revaluation loss, if it reverses a revaluation surplus for the same asset, is recognized in other comprehensive income; otherwise, it is recognized in profit and loss, making option C correct. Option B is incorrect because revaluation loss is not booked to other comprehensive income unless it reverses a surplus on the same asset.

How Is Revaluation of Non-Current Assets Accounted For