Final answer:
The subsequent revaluation in the revaluation model for PPE involves identifying the asset, conducting a revaluation, and recognizing the revaluation.
Step-by-step explanation:
In the revaluation model for property, plant, and equipment (PPE), subsequent revaluation is done by following these steps:
- Identify the asset for revaluation: Determine which specific PPE asset needs to be revalued.
- Conduct a revaluation: Determine the fair value of the asset by getting it appraised or using other reliable valuation methods.
- Recognize the revaluation: Record the increase or decrease in the value of the asset by debiting or crediting the revaluation reserve account and crediting or debiting the asset account.
By following these steps, subsequent revaluation can be performed in accordance with the revaluation model for PPE.