Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

IAS 16, IFRS 5 and IAS 40 — Disposal treatment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 16, IFRS 5 and IAS 40 — Disposal treatment

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by MVS.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • June 16, 2017 at 5:10 pm #393317
    MVS
    Member
    • Topics: 6
    • Replies: 10
    • ☆

    Sir,
    I’m being silly but can you please help as i am unable to get this in my head.

    What happens to revaluation reserve account for a specific asset when that specific asset is sold for IAS-16, IAS-40 and IFRS-5?

    I understand that any gains or loses upon disposal is recognized straight to P&L. But what happens to any build up of previous revaluation reserve, should this be transferred to Retained Earnings?

    Thanks.

    June 16, 2017 at 10:56 pm #393342
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    Any gains held in reserves get transferred to retained earnings in the statement of changes in equity. Please note that we do not use a revaluation reserve in IAS 40 as any gains are recognised through profit or loss.

    Thanks

    June 17, 2017 at 3:05 am #393350
    MVS
    Member
    • Topics: 6
    • Replies: 10
    • ☆

    Thanks very much Sir for your prompt reply.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.