Question
Which statement concerning revaluations that reverse prior adjustments in value is untrue ? a. A revaluation decrease that reverses a previous increase should be recognised
Which statement concerning revaluations that reverse prior adjustments in value is untrue?
a. | A revaluation decrease that reverses a previous increase should be recognised as a decrease in other comprehensive income to the extent of any credit balance existing in the revaluation surplus reserve account. | |
b. | When a change in valuation is a reversal of a previous revaluation, accumulated depreciation does not have to be written off against the asset before the revaluation is recorded. | |
c. | A revaluation decrease that reverses a previous decrease should be recognised in the income statement to the extent that it reverses any previously downward revaluation of the same asset. | |
d. | A debit to a revaluation surplus reserve account that is a reversal of a previous revaluation increase should not exceed the amount of the original credit. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started