AASB 116 requires that revaluation increments and decrements must be offset recorded directly to equity and not be recorded as a gain or loss.

Question

Quizplus · Accepted Answer

AASB 116 requires that revaluation increments be recorded in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, revaluation decrements are recognized in profit or loss. Only if a decrement reverses a previous increment of the same asset, it is charged against the revaluation surplus directly in equity.

AASB 116 Requires That Revaluation Increments and Decrements Must Be