Some Gains and Losses Arising on a Revaluation of Property

question 45

Multiple Choice

Some gains and losses arising on a revaluation of property plant and equipment are to be included in other comprehensive income. When the asset is measured in a foreign currency, how would exchange differences be treated?

• A) As an item to be included in income or loss for the year.
• B) As a reduction or increase in the carry cost of the asset.
• C) As a contra account to be fully disclosed and to show the impact of foreign exchange differences.
• D) The differences should be included in the calculation of other comprehensive income.

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