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Posted: April 19th, 2023

IAS 16 requires that revaluation surplus resulting from initial revaluation

IAS 16 requires that revaluation surplus resulting from initial revaluation of property, plant, and equipment should be treated in one of the following ways.Which of the four options mirrors the requirements of IAS 16?(a) Credited to retained earnings as this is an unrealized gain.(b) Released to the income statement an amount equal to the difference between the depreciation calculated on historical cost vis-Ã -vis revalued amount.(c) Deducted from current assets and added to the property, plant, and equipment.(d) Debited to the class of property, plant, and equipment that is being revalued and credited to a reserve captioned ârevaluation surplus,â which is presented under âequity.â

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