Consider the following information relating to five different items of plant and equipment at the reporting date.

Assuming plant and equipment is carried under the revaluation model, determine the amount of any revaluation adjustment necessary.

The solution is below ;

Under revaluation model revalue to lower of FV and RA.

Asset A: Revaluation increase of $10 000 (CA $200 000; FV $210 000; RA $220 000)

Asset B: Revaluation decrease of $10 000 (CA $100 000; FV $90 000; RA $96 000)

Asset C: Revaluation increase of $6 000 (CA $160 000; FV $170 000; RA $166 000)

Asset D: Revaluation decrease of $20 000 (CA $400 000; FV $380 000; RA $440 000)

Asset E: Revaluation decrease of $6 000 (CA $240 000; FV $240 000; RA $234 000)

I understood that the revaluation adjust for CA to equal FV

but in case of RA less than FV as asset C and E, what to do?

Can you please explain? thank you

Asset A B D E Carrying amount $ 200 000 100 000 160 000 400 000 240 000 Fair value $ 210000 90 000 170 000 380 000 240 000 Costs of disposal $ 6000 2000 4000 10 000 6000 Value in use $ 220 000 96 000 164000 440 000 230 000