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As per IAS 16, Is it possible to net off the revaluation loss of a class of asset with the revaluation gain of other class of asset?

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Question added by Abu Bakar Ashfaq , Senior Consultant , PricewaterhouseCoopers Middle East
Date Posted: 2016/02/12
Sufiyan Raza
by Sufiyan Raza , Senior Document Controller , Olsen & Partners Interiors LLC

Its not possible we can adjust the previously recongnised revaluation loss against subsequent increase in assets vaule. This treatment is for the same asset 

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Thanks for the invitation.

No it is not possible.

*   If a revaluation results in an increase in value, it should be credited to other comprehensive income and accumulated in equity under the heading revaluation surplus unless it represents the reversal of a revaluation decrease of the same asset previously recognised as an expense, in which case it should be recognised in profit and loss.

*   A decrease arising as a result of a revaluation should be recognised as an expense to the extent that it exceeds any amount previously credited to the revaluation surplus relating to the same asset.

 If an item is revalued, the entire class of assets to which that asset belongs should be revalued.

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