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??

Let me work through an example:

Begin B/S:
PPE: 30
Other Asset: 70
Liability: 50
Equity: 50

1) Assume PPE is impaired by 10, then:

I/S: record loss of 10

B/S:
PPE: 20
Other Asset: 70
Liability: 50
Equity: 40 (-10 reflected through RE)


2) Assume PPE is revalued to 40, then:

I/S: record gain of 10

B/S:
PPE: 30 (revalued up to the original cost)
Other Asset: 70
Liability: 50
Equity: 60 (+10 reflected through RE AND +10 as part of OCI, fair value over original cost)


Asset requires +10 to be balanced - which ACCOUNT do we increase?