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Why do we take deficit on revaluation of investments to be 25? why not 35 or 60 (25+35)? I don’t understand the logic. Please help me understand Mike
The question asks for the reflection of the adjustments in the statement of changes in equity.
The revaluation reserve is a column in that statement.
within the revaluation reserve, before these adjustments are made, is an amount of 25 revaluation increase in the value of the asset now being impaired.
We can only take out from that revaluation reserve the same amount as already resides in that reserve ….. and that’s why we restrict the reversal of the revaluation to just the 25 that’s already in there
OK?
I get it. I recalled knowledge from F3 regarding this after reading your answer. Thank you for your kind help.
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