Since you want to be technical, we should say that the changes to the value of capital items get charged to the income statement (profit & loss). Capital items

Since you want to be technical, we should say that the changes to the value of capital items get charged to the income statement (profit & loss). Capital items only get depreciated if they are wasting, and could indeed be revalued upwards. It is quite common for real property, for instance) to not get depreciated and be held at historical cost, or indeed to be revalued annually.