According to International Financial Reporting Standards, 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

The revaluation of equipment when fair value exceeds book value results in an increase in other comprehensive income. This is because the revaluation surplus is reported as other comprehensive income instead of being recognized immediately in the income statement.

According to International Financial Reporting Standards, the Revaluation of Equipment