When disposing of property, plant, and equipment measured under the revaluation model, what is the first step?

In the context of disposing of property, plant, and equipment (PPE) measured under the revaluation model, the first step is to revalue the asset to fair value. This is essential because, under the revaluation model, the carrying amount of the asset must reflect its fair value at the date of disposal.

Revaluing the asset ensures that any gain or loss on disposal is calculated based on the current fair value, not on the historical cost adjusted only for depreciation. This step is crucial for accurately presenting the financial outcome of the disposal in financial statements, as it helps to determine whether the entity realizes a profit or loss on the sale compared to the asset's adjusted carrying amount.

This approach aligns with the accounting standards governing the revaluation model, which prioritizes an asset's fair presentation, particularly when disposing of significant assets. It provides users of the financial statements with relevant information regarding the asset's current value, rather than relying on outdated valuation that may not reflect its market conditions at the disposal date.