preference dividend v ordinary dividend

ekans

my understanding is that a preference dividend goes through the income statement, and an ordinary dividend is usually just a memo at the bottom of the income statement (albeit it is then ultimately deducted from retained earnings figure that ends up on balance sheet). can someone confirm if this correct/incorrect?

on a side note, related to revaluation reserve and depreciation, a question i am doing has the following note:

€500,000 of the revaluation reserve will be realised in the current year as a result of the depreciation of the buildings

lets say total depreciation was 3 million.

is the following the correct treatment?
credit the asset in bal sheet by 3 million
debit revaluation reserve .5 million
debit p&l (cost of sales) 2.5 million

ekans

regards the treatment of preference dividend and ordinary dividend, I have since learned that my suggested treatment was correct as per Ias32 financial instruments - presentation

However I am still struggling with revaluation and what with having exam tomorrow a little worried. In addition to my outstanding previous query above regards revaluation,
I was doing the following this morning regards revaluations. Is this correct?

simple revaluation of asset by €5000

dr asset 5000
cr revaluation reserve 5000 (should i credit other comprehensive income here instead. does other comprehensive income ever get credited in any scenario?)

Any tips really appreciated

ekans

my issue ultimately boils down to this:

(sourced from a textbook)
On revaluation the following journal entries are made:
Debit PPE ($240,000 - $200,000) $40,000
Credit Deferred tax liability (25% X $40,000) $10,000
Credit Revaluation reserve $30,000
The $30,000 surplus on revaluation is shown as other comprehensive income in the statement of total comprehensive income.

the line highlighted above indicates crediting oci also, yet where would the matching debit be for this?

Dellboy2007

DR Non-current asset cost (difference between valuation and original cost/ valuation)

DR Accumulated depreciation

CR Revaluation reserve (gain on revaluation)

Marcusm

The prefs v ordinary dividend treatment you describe is appropriate only in circumstances where the share on which thepref dividend is paid is treated as debt for ifrs purposes and the converse is true for the ordinary. You're unlikely to come across it in practice but it is quite possible for a company to issue shares described as ordinary which carry in substance debt characteristics (meaning the dividends are deducted in arriving at net income) while having pref shares in issue the dividend on which is an appropriation if profits. There is nothing in law to require a pref dividend to take precedence over the ordinary - in each case you'll have to look at the articles.