depreciation about revalued asset

after revaluation, what to do with past accumulated depreciation

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G'day! I have a question here, could anybody clarify it to me? Here's it, for an asset has been depreciated for several years, there will be a revaluation surplus accrued in this FY end, should I reverse the accumulated depreciation into income and depreciate it from the revalued amount next year? Like if its initial cost of 100 and carrying amount will be 70 in the FY end and then will be revalued to 120. Is it correct to enter journals like below?

Dr. Accumulated depreciation 30

  Equipment-revalution surplus 20

  Cr. Gain 30

    OCI-revalution surplus 20

 

  Thanks!

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By paul.benny
19th Nov 2022 11:25

Not quite - the entire movement between prior book value and revalued amount goes to OCI. See FRS102 17.15E

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By Leywood
19th Nov 2022 16:25

Homework Q?

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