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Can anyone explain me the logic of making a transfer of the excess depreciation from revaluation surplus to retained earnings
I dont get this whole thingIt’s to essentially make the situation fairer. If an entity revalues an asset then more depreciation will be charged than if it hadn’t revalued. It’s profitability would look worse than if it hadn’t revalued. Making the transfer from revaluation surplus corrects this problem.
Thank you
Would you be able to guide me as to in which lecture is this topic discussed
I am having trouble finding it.You are welcome. Not sure if or where a video is available at this level. However, I found this video-
https://opentuition.com/acca/fr/ppe-revaluation-upwards-acca-financial-reporting-fr/comment-page-1/
You might also find this thread to be useful-
https://opentuition.com/topic/excess-depreciation-charge-transferred-to-retained-earnings/
You might also find the following useful-
https://opentuition.com/topic/revaluation-of-previously-depreciated-asset/
I would suggest the above topic may be of more importance in the financial reporting subject of Acca.
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