Top tutor Tom Clendon explains all you need to know about IAS 16 Property Plant and Equipment on page 25 in the latest PQ magazine, out now: https://issuu.com/pqpublishing/docs/web_pq_nov22.
What are the revaluation accounting rules and where do you recognise gains and losses? He summarises it all by saying: “Gains go to equity unless a reversal of a loss charged to the statement of profit or loss. Losses go to equity until the reserve relating to that asset is exhausted, then losses are charged to the statement of profit and loss.” He then provides an example to show how it all works…
