[SchruteBeet]

I am solving the MCQs from FAR Becker’s F1. I came across a few questions where the explanation said you’re supposed to exclude revaluation loss from OCI and instead, put it under income statement. However, I came across another question that had a revaluation surplus related to an asset in year 1 and a revaluation loss related to the same asset in year 2. Here, the explanation says you’d put the revaluation loss for year 2 under OCI to offset the revaluation surplus from the prior year. So where does revaluation loss really go — OCI or income statement?

[falvio]

If you have a surplus FIRST then a loss, the loss goes to offset the surplus in OCI. If you have a loss FIRST then a subsequent gain would reduce the loss first in the IS I'm pretty sure

[SchruteBeet]

Thanks @falvio

[Author]

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