[emilieduchatelet2u]

I’m sorry for asking the entire question. It was because I don’t understand most of the question/answer and it doesn’t really show how it works from the materials from BPP.

from the answer paper, it says “change in accounting policy” on retained earnings is $40,000 and on revaluation surplus, ($40,000). I don’t know where $40,000 is from and why the amount that was added on retained earnings($40,000) is taken away from revaluation surplus.

and the same thing happens for “transfer to retained earnings” on retained earnings and revaluation surplus. the amount($35000)is added on retained earnings and the same amount is subtracted on revaluation surplus. Why is that?

thank you in advance, happy new year

[emilieduchatelet2u]

Thanks for answering, what exactly is a line-by-line basis though?

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