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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › impact of revaluation on gearing ratio
“on the positive side revaluation gains will increase equity which will improve the gearing ratio.”
sir i hope “IMPROVE” here basically means that gearing ratio will fall if equity increases??
You are correct.
Equity means gearing down which is a very good thing indeed.
