Explanation

Under the revaluation model in accounting:

1. Revaluation Model Basics: The revaluation model allows companies to carry assets at fair value rather than historical cost. When an asset's fair value increases above its carrying amount, this increase is recognized.

2. Treatment of Revaluation Increases: According to accounting standards (IFRS and similar frameworks):

   • Initial revaluation increases (when an asset's carrying amount is increased for the first time) are recognized in other comprehensive income (OCI) and accumulated in equity under revaluation surplus.
   • Subsequent revaluation increases may be treated differently, but the initial increase goes to OCI.

3. Why not the other options:

   • A. Financial leverage ratio: This ratio (debt/equity) would actually decrease because equity increases through the revaluation surplus, not increase.
   • C. Current period return on assets: ROA (net income/assets) would likely decrease because assets increase in the denominator while net income is unaffected by OCI entries.

4. Key Accounting Treatment:

   • Debit: Asset account (increase)
   • Credit: Revaluation surplus in equity (through OCI)

Therefore, the correct answer is B. other comprehensive income.