Financial statements question

omega man

I cannot see how they get a certain answer on the CBT no.3 1.4 (b).
They get £300,000,i think the answer should be £60,000.
It states in my textbook that where an asset has previously been revalued up, so there is a revaluation surplus. If that asset is subsequently revalued down you debit the revaluation surplus and anything left over goes to the statement of comprehensive income.
Am i missing something here?

Nps

The £60,000 would be shown as an expense in the statement of profit and loss (or the top part of a Statement of Profit and Loss and Other Comprehensive Income). You are right in that the other £300,000 would be taken from the revaluation surplus but it is that which would be shown in the statement of other comprehensive income (or the bottom half of a Statement of Profit and Loss and Other Comprehensive Income).

Your theory of the process is correct, you've just got confused about where the entries go in the statements. The key point is that the question is asking what is recognised in 'other comprehensive income', not what is shown in the main statement of profit and loss.