Reference no: EM132823450
At 31 Mar X5, a company has a property with a carrying amount of £570,000 There is a balance on the revaluation reserve of £20,000 relating to a previous revaluation of the property.
Problem 1: If the property is now revalued at £530,000, which of the following is the correct treatment in the financial statements for the year ending 31 Mar X5?
A. Recognise a revaluation loss of £40,000 in Other Comprehensive Income
B. Recognise a revaluation loss of £20,000 in Other Comprehensive Income
Recognise a revaluation loss of £20,000 in Statement of Profit or Loss
C. Recognise a revaluation loss of £40,000 in Statement of Profit or Loss
D. Recognise a revaluation loss of £20,000 in Other Comprehensive Income
Recognise a revaluation loss of £40,000 in Statement of Profit or Loss
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