upward revaluatiion and income statement

Schweser says, “any increase in value is reported in the income statement to the extent that a previous downward revaluation reduced net income”… now what does this mean ?? Thanks

can you be a bit more specific? to which “revaluation” it refers exactly?

I understood… thanks anyways :slight_smile:

Can you explain it to me? I am confused with that sentence too

say, for example an impairment loss on equipment is $100K in 2006. But, in 2007 equipment market value went up by $150k. Then according to IFRS you increase your NI for 2007 by $100K, report remaining $50K as an adjustment to equity. Sorry about the messy wording of the sentence.