Revaluation Surplus
Code: 3411
👁 Views: 82
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Credit |
Definition
Represents the increase in value of fixed assets (buildings, machinery, land) resulting from revaluation under IAS 16. This surplus is not reclassified to the income statement.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 16
Property, Plant and Equipment
US GAAP
ASC 360
Property, Plant and Equipment
❓ Frequently Asked Questions
Q: What is revaluation surplus?
A: The increase in the value of fixed assets (buildings, machinery, land) resulting from revaluation under IAS 16, presented in OCI and not distributable as dividends.
Q: How is revaluation surplus transferred to retained earnings?
A: When the asset is sold or depreciated, the realized surplus can be transferred to retained earnings (not to the income statement).