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Before you discussed that the impairment shall be first settled against the surplus. but in the video lecture you were also deducting it in OCI. I did not understand the logic. Please explain.
Kind regards.
OK, so the revaluation surplus is linked to OCI, in a similar way that profit for the year is linked to retained earnings. When we charge the impairment it goes through OCI and this then reduces the revaluation surplus in the SOCIE. If we make a profit then this gets added to the retained earnings, or if a loss it is deducted.
Thanks
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