PPE																		
																			
Scenario A: Revaluation upward (revaluation gain)																			
	BV (value of asset as per the last revaluation date)					100													
	Accumulated depreciation					-30				before revaluation							before revaluation		
	FV (current market value/price)					150													
									PPE	100	Liab-s	100				PPE	120	Liab-s	100
	1. To calculate revaluation gain:								Ac dep	-30	Retained earnings	-30				Ac dep	-30	Retained earnings	-30
		FV-BV	50															Rev reserve	20
	2. To do double entry									70		70					90		70
		Db	PPE (B/S)	50															
		Db	Ac dep-n (B/S)	30															
		Cr	Revaluation reserve (surplus) (B/S)	80						impact of revaluation upwards									
																			
									PPE	150	Liab-s	100							
									Ac dep	0	Retained earnings	-30							
											Revaluation reserve (surplus) (B/S)	80							
										150		150							
																			
Scenario B: Revaluation downward (revaluation loss)																			
	BV (value of asset as per the last revaluation date)					100													
	Accumulated depreciation					-30													
	FV (current market value/price)					50													
																			
	1. To calculate revaluation loss:									impact of revaluation downwards (with no rev reserve earlier created)							impact of revaluation downwards (with no rev reserve earlier created)		
		FV-BV	-50																
	2.a To do double entry - with no rev reserve earlier created								PPE	50	Liab-s	100				PPE	70	Liab-s	100
		Cr	PPE (B/S)	50					Ac dep	0	Retained earnings	-50				Ac dep	0	Retained earnings	-30
		Db	Ac dep-n (B/S)	30														Rev reserve	0
		Db	Revaluation loss (P/L)	20						50		50					70		70
																			
																			
	2.b To do double entry - with rev reserve earlier created																		
		Cr	PPE (B/S)	50															
		Db	Ac dep-n (B/S)	30															
		Db	Revaluation reserve (surplus) (B/S)	20															
																			
																			
																			
																			
	Bottomline:																		
		calculate rev gain or loss																	
		reverse acc depreciation (regardless if we have rev gain or loss)																	
		"prepare the double entry where you will record rev gain or loss against rev reserve B/S (if there is some baalance in it); if not, the it will go into P/L"