Which Statement Concerning Revaluations That Reverse Prior Adjustments in Value

question 41

Multiple Choice

Which statement concerning revaluations that reverse prior adjustments in value is untrue?

• A) A revaluation decrease that reverses a previous increase should be recognised as a decrease in other comprehensive income to the extent of any credit balance existing in the revaluation surplus reserve account.
• B) A revaluation increase that reverses a previous decrease should be recognised in the income statement to the extent that it reverses any previously downward revaluation of the same asset.
• C) A debit to a revaluation surplus reserve account that is a reversal of a previous revaluation increase should not exceed the amount of the original credit.
• D) When a change in valuation is a reversal of a previous revaluation accumulated depreciation does not have to be written off against the asset before the revaluation is recorded.

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Definitions:

Downsizing

The process of reducing the number of employees within an organization, often to cut costs or improve efficiency.

Transitional Change

A period or process of moving from one state, stage, or condition to another, often involving significant shifts in operations or strategy.

Implementing

The process of putting a decision or plan into effect; execution.

Basic Problem Solving

The process of identifying a problem, determining the cause, and finding an effective solution through a series of steps.