How are revaluation surplus’s or losses recorded under IFRS?
Under IFRS, a revaluation surplus (gain) is recorded to other comprehensive income (OCI), while a revaluation loss is recorded to the income statement.
However, if the company reported a revaluation loss in a prior period, the company can recognize a revaluation surplus in the income statement up to the prior loss amount.
For example, if the company had a revaluation gain of $5,000 in the current year, but in the prior year they recorded $2,000 of revaluation loss to the income statement, then in the current year, $3,000 would go to OCI and $2,000 of the gain would be recorded to the income statement.
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