According to IAS 16, a decrease in the carrying amount of a fixed asset that is identified on an asset's first revaluation should be recorded as:
A) an expense on the income statement.
B) a prior period adjustment to retained earnings.
C) a credit to Revaluation Surplus.
D) a debit to Revaluation Surplus.

Question

Quizplus · Accepted Answer

A decrease in the carrying amount of a fixed asset on its first revaluation should be recognized as an expense in the income statement, unless it reverses a previous revaluation surplus for the same asset.

According to IAS 16, a Decrease in the Carrying Amount