At the end of the accounting period the value of the entity's building rises by £10,000, however, the £10,000 is not included in the income for the period. This 'non' adjustment is in accordance with the following concept:

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The Realisation concept in accounting states that revenue is recognized when it is earned, regardless of when the cash is received. In this case, the increase in the value of the building is not recognized as income until it is actually realized, such as through a sale. This concept prevents the entity from recognizing the £10,000 increase in the building's value as income for the period since it has not been realized.

At the End of the Accounting Period the Value of the Entity's