Answer:
According to IAS 16, the journal entry recorded for this date will consist of:
Debit Building (cost = €24m -€20m) €4,000,000
Debit Accumulated depreciation - Building €6,000,000
Credit Revaluation reserve (Gain on revaluation) €10,000,000
(To acknowledge the building's revaluation)
Explanation:
Per IAS 16, any gains from asset revaluation are always credited to Equity, specifically to the revaluation reserve, unless they reverse any previously identified losses on the asset in the income statement. In that instance, the revaluation gains would be recorded in the income statement.
Revaluation gains are considered unrealized until the assets are sold or removed from the records.