According to International Financial Reporting Standards (IFRS), the revaluation of equipment when fair value exceeds book value, results in:
A) An increase in net income.
B) A decrease in net income.
C) An increase in other comprehensive income.
D) A decrease in other comprehensive income.

Question

Quizplus · Accepted Answer

Revaluation of equipment when fair value exceeds book value results in an increase in the value of the asset and therefore an increase in other comprehensive income, as it is considered a gain that is not part of the company's regular business activities. It does not impact net income.

According to International Financial Reporting Standards (IFRS), the Revaluation of Equipment