IND AS 16 - Property , Plant and Equipment

Question 1

India Turnings Limited has adopted revaluation model, as per Ind AS, since 1st April, 20X1 to measure its property, plant and equipment (PPE) and have revalued it as follows: (i) As on 1st April, 20X1 ® PPE has been revalued up by * 3,00,000. (ii) As on 31st March, 20X2 ® PPE has been revalued down by ‘ 3,60,000 (ii) As on 31st March, 20X3 ® PPE has been revalued up by * 5,00,000 How will the increase in year 20X2-20X3 be recognized in the financials of India Turnings Limited?

1: 5,00,000 is credited to other comprehensive income

2: * 60,000 is credited to profit and loss account and 4,40,000 is credited to other comprehensive income

3: 60,000 is credited to other comprehensive income and 4,40,000 is credited to profit and loss account

4: 5,00,000 is credited to profit and loss account

Answer 1

60,000 is credited to profit and loss account and 4,40,000 is credited to other comprehensive income