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When we dispose a revalued asset, do we have to write off the Revaluation surplus while calculating the Profit or loss on disposal?
Do you cover these in your lectures, sir? Because I watched your lectures months back, and probably might have to give a rewatch for this topic.Also,could you tell me the steps for finding the profit or loss on disposal of a revalued asset.
Sorry for troubling you with too many doubts,sir.But they keep arising, and thank you so much for your support.
I do cover this in my lectures.
You calculate the profit or loss on sale in the normal way, and this goes to the SOPL.
The balance remaining on the revaluation reserve is then transferred to retained earnings (because it is now distributable and so does not need to be kept separate).
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