A company under IFRS revalues its land from \$1,000,000 to \$1,200,000. How should this be reflected in the financial statements?

• A. Recognize a \$200,000 increase in liabilities.
• B. Recognize a \$200,000 revaluation surplus in other comprehensive income.
• C. Recognize a \$200,000 gain in net income.
• D. Do not recognize any change until the land is sold.

Answer: (B)