Revaluations go to OCI under IFRS only. GAAP does not allow revaluations.
Here are the rules on when it goes to the income statement or Other Comprehensive Income (OCI):
-Revaluation loss -> goes to income statement. BUT, if a revaluation gain occurred in a prior period and AOCI still includes the reevaluation gain, send the loss to OCI instead. *AOCI stands for accumulated other comprehensive income.
-Revaluation gain -> goes to OCI. BUT, if a revaluation loss occured in a prior year and the loss was an expense on the income statement, send the revaluation gain to the income statement instead.
Loss example 1: Current year reevaluation loss = -100 Accumulated OCI revaluation account = 0
**This year, include -100 as an expense on the income statement.
Loss example 2: Current year reevaulation loss = -100 Accumulated OCI revaulation account = 20
**This year, include -20 on OCI, and send -80 to income statement
Gain example 1: Current year gain = 350 In prior years, a revaluation loss NEVER occurred
**This year, include +350 in OCI
Gain example 2: Current year gain = 350 In prior years, a revaulation loss of -10 occured and it was present on income statement
**This year, include +10 on income statement as a gain. Send +340 to OCI.
I hope this helps. Good luck today.
Motivated by JC. I do it to make God proud.
FAR: 91 July 2015
AUD: 83 October 2015
REG: 81 January 2016
BEC: 83 February 2016
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