When a class of assets is revalued under AASB 116, in all cases we must net-off the increments and decrements in determining if there is a debit/credit to the asset revaluation reserve or an item of expense or income to be included in period profit or loss.

Question

Quizplus · Accepted Answer

Under AASB 116, revaluation increments and decrements for each class of assets must be treated separately. Increments are credited directly to equity under the heading of revaluation surplus, whereas decrements are first charged against any credit balance in the revaluation surplus relating to the same asset class, and any excess is recognized in profit or loss. They are not netted off against each other.

When a Class of Assets Is Revalued Under AASB 116