FAR – IFRS Revaluation Model – Clarification please?

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  • June 13, 2013 at 2:50 am #178147
    kyu6
    Member

    Hello All!

    I have both Becker and Wiley as my study materials. For Becker, they seem to mention that revaluation gains go to OCI and losses go to Income Statement. On Wiley, one question mentions that all gains and losses go to OCI.

    Can someone please clarify this?

    Thank you in advance!!

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  • June 13, 2013 at 3:02 am #421306
    mangos
    Member

    It depends..

    Gains go to OCI and Losses to the I/S due to the rule of conservatism.

    But losses can also go to OCI to wipe out previously recognized gains.

    So in essence, it's both.

    FAR (5/07/13): 96

    June 13, 2013 at 8:40 pm #421307
    kyu6
    Member

    Thank you!! 🙂

    June 13, 2013 at 10:46 pm #421308
    smalltimeauditor
    Member

    I thought the rule was that if its an investment, it goes to the I/S but if its PP&E then it goes to OCI… thoughts?

    B - Passed
    A - Passed
    R - Passed
    F - Passed

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