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    Question

    An asset was previously revalued downward. If it is now

    revalued upward, how should the increase be treated?
    A Ignore upward valuation Correct Answer Incorrect Answer
    B Adjust retained earnings Correct Answer Incorrect Answer
    C Recognised in OCI to the extent of previous decrease Correct Answer Incorrect Answer
    D Recognised in P&L to the extent of previous decrease Correct Answer Incorrect Answer
    E Transferred to capital reserve Correct Answer Incorrect Answer

    Solution

    Revaluation increase is recognised in P&L to the extent it reverses a previous decrease that was earlier recognised in P&L (Ind AS 16 para 40).

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