In example 4 of your'e lecture notes PPE and Financial statements there is a adjustment '"Kandy does not make an annual transfer to retained profits to reflect the realisation of the revaluation gain. "" what does it mean i didnt get it watching youre lecture ?
Ask the Tutor ACCA FR
Non current asset
It means that the transfer from the revaluation reserve to retained earnings for any excess depreciation is not done on an annual basis. It is optional as to whether we make the adjustment in the SOCIE where we DR RR CR RE, and Kandy have decided not to do so.
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