Nisi Co measures an intangible asset at fair value. The asset was revalued by GHS 400 in 20X3, and there is a revaluation surplus of GHS400 on the statement of financial position. At the end of 20X4, the asset is revalued and a downgrade of GHS 500 is required.

Required:

Explain the accounting treatment of downward revaluation.

Answer rating: 100% (QA)

The accounting treatment of a downward revaluation of an intangible asset is as follows The carrying ... View the full answer