Revaluation of AFS investment, only, will, available, companies

bcp901

Hi, I only thought that while revaluing the equity ( or bonds) investments, the revaluation reserve will be credited and investment asset will be debited.

But there are companies whose practice is to credit revaluation reserve and debit a fictitious account like invt reserve, instead of assets directly. Reasons for this might be the companies don't want to inflate the value of their investments ( though all are classified as available for sale). In this case their total revaluation reserve would be nil (debit credit offset). How can then the AFS reported at the fair value when unrealised gains are not added?Seems strange to me. Has any one come across such thing? Can anyone explain the logic to me?

Thanks