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If an asset that was being carried at revalued amount with revaluation reserve in equity is replaced with another asset and the transaction lacks commercial substance then the carrying amount would remain same…
BUT what about the revaluation reserve?? would it b closed in retained earnings or left as it is??What do you mean “the transaction lacks commercial substance”? Do you have a particular situation in mind?
An interesting question : A company running circus show business with tigers as its main attraction. Can the company considers the tigers as fixed assets under IAS16 or Agriculture IAS41? If fixed assets, how should they be depreciated? I still cannot figure this !!!
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closed in retained earning
if a football player can be an NCA , i guess the tigers should be treated as well
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