Statements of financial position

Dear Tutors,
Please help me explain Note 2 below, I do not know the effect of this note to the question because without this note, I can still calculate all amounts question required (eg: Addition of NCA, Depreciation chare):
“The revaluation surplus arose from the revaluation of some land that was not being depreciated”

This is the full question without their figures:

“The following information is available for Sioux, a limited liability company:
Statements of financial position for 2 years X4 and X3 (with many figures I can not type here)

Non-current assets
Cost or valuation
Accumulated depreciation
Carrying value
Current assets
Inventories
Receivables
Cash at bank

Equity and liabilities
Capital and reserves
Ordinary share capital
Revaluation surplus
Retained earnings
Non-current liabilities
10% Loan notes
Current liabilities
Trade payables
Income tax

Summarised statement of profit or loss for the year ended 31 December 20X4

Profit from operations 2,650
Finance cost (loan note interest) (300)

Income tax expense (700)
Net profit for the year 1,650

Notes
1/ During the year non-current assets which had cost $800,000, with a carrying value of $350,000, were sold for $500,000.
2/ The revaluation surplus arose from the revaluation of some land that was not being depreciated.
3/ The 20X3 income tax liability was settled at the amount provided for at 31 December 20X3.
4/ The additional loan notes were issued on 1 January 20X4. Interest was paid on 30 June 20X4 and 31 December 20X4.
5/ Dividends paid during the year amounted to $750,000.

Required

Prepare the company’s statement of cash flows for the year ended 31 December 20X4, using the indirect
method, adopting the format in IAS 7 Statement of cash flows. (15 marks)”

Thank you so much.