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    Question

    A company revalued its land upward by ₹30 lakh during

    the year. It has not previously recorded any impairment or downward revaluation for this asset. How should this gain be accounted for in the financial statements as per Ind-AS 16?
    A Directly credited to Profit & Loss Correct Answer Incorrect Answer
    B Deferred to future years Correct Answer Incorrect Answer
    C Credited to Other Comprehensive Income and Revaluation Reserve Correct Answer Incorrect Answer
    D Shown under Capital Reserve Correct Answer Incorrect Answer
    E Transferred to Retained Earnings Correct Answer Incorrect Answer

    Solution

    Revaluation gain is recorded in OCI and accumulated under revaluation reserve as per Ind-AS 16 unless it reverses a prior revaluation loss.

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