The losses that arise from a general fall in market prices that are not specific to a particular asset or a small group of assets. Revaluation losses are recognized in the income statement (profit and loss statement). However, if a revaluation surplus has come up as a result of a previous revaluation of a respective asset, a revaluation loss can be recognized in equity.

If the asset’s carrying value exceeds its net recoverable value in use or through sale, and the loss is specific to the asset, or a small group of assets, then impairment is recognized (the situation is impairment losses, rather than revaluation losses).

Revaluation losses that arise from consumption of economic benefits (e.g., physical damage to an asset) are recognized in the profit and loss statement as an operating cost similar to depreciation. Evaluation losses that are caused by a general fall in market values on a group of assets are partly charged to the statement of “total recognized gains and losses”. However, in the case of a loss where the carrying amount of an asset falls below depreciated historical cost, then any additional losses that may arise beyond that point will be charged to the profit and loss statement.