ACCA AAA ^UK Syllabus D. Audit of Historical Financial Information - Non-current Assets - Revaluation - Notes ^{4 / 41}

Basic double entry steps:

• Dr Accumulated depreciation
  Cr Revaluation Reserve

• Dr Cost
  Cr Revaluation reserve

An impairment downwards after a revaluation

• Dr the revaluation reserve first

  then

  Dr the Income statement

Keep the revaluations up to date

So change only when necessary (not always every year)