Final answer:
IAS 16 allows for revaluation surplus in relation to property, plant, and equipment.
Step-by-step explanation:
IAS 16, which stands for International Accounting Standard 16, allows for revaluation surplus in relation to the property, plant, and equipment of a company. Revaluation surplus is the amount that an asset's value increases in excess of its historical cost, due to revaluations.
Under IAS 16, if there is a revaluation surplus, it can be recognized as other comprehensive income and accumulated in a separate equity account called the revaluation surplus.
For example, if a company's land and building is revalued and the new value exceeds the historical cost, the difference can be recorded as a revaluation surplus and recognized in the financial statements.