On December 31 yr 1, entity adopted IFRS revaluation model for reporting its long-term assets and revalued a patent with a carrying value of $85K and 10 yr life to its fair value of 75 k. On December 31, Yr 2 before recording any amortization, entity determined that the patent had a fair value of 90K. In its 12-31-02 financial statements, the entity will report a revaluation gain
of $10K on the income statement and $5K in other comprehensive income.
The total yr2 revaluation gain is $15K (90K-75k). 10k of the revaluation gain will be recognized on the income statement to reverse the revaluation loss of 10K (75kfair value-85kcarrying value) reported on the income statement in yr1. The remaining 5K will be recognized as a revaluation surplus in Yr2 other comprehensive income.