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This amount should included in SOFP OR statement in equity changes when Excess depreciation takes place??
The excess depreciation is transferred from revaluation reserve to retained earnings and is shown in the statement of changes in equity. The SOPL is not affected.
Sorry – I had mistakenly read SOFP as SOPL 🙂
In the SOFP, the asset would appear at the revalued amount less depreciation calculated on the revalued amount.
The reserves would include retained earnings and the revaluation reserve after making the transfer from one to the other of the excess depreciation.Briefly,the excess depreciation should be included in SOFP or not as Retained profit?
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