You can use the profile option, GL: Income Statement Accounts Revaluation Rule, to specify whether you want to revalue income statement accounts using period–to–date (PTD) or year–to–date (Y–T–D) balances.
If the PTD profile is selected, the Revaluation program will split the balance sheet and income statement accounts into separate journals, which will have the Revaluation and Revalue Profit/Loss categories respectively. The separated journals allow just the YTD based balance sheet revaluation to be reversed without touching the PTD based income statement accounts. If the YTD profile is selected, the journals are not separated, and the Revaluation category is used.
From the Oracle General Ledger Users Guide, Chapter 11:
If you choose to revalue PTD balances for income statement accounts, the program continues to appropriately revalue YTD balances for balance sheet accounts. Revaluing the PTD balance of your income statement accounts creates weighted average YTD balances using period rates from each corresponding period and produces more accurate results in compliance with SFAS No. 52 standards.
When you select the PTD option for revaluing your income statement accounts, Revaluation produces two separate journal entries; one that revalues your balance sheet accounts and another for your income statement accounts. You will not need to reverse the PTD revaluation journal entry for your income statement accounts in the subsequent period since that revaluation only applied to last period’s activity.