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Dear Mike,
iv) it says the cost was 7 million before, and it is now 8.8 million, it also says that the other reserve represents the net increase in eqity investment as at 1st oct 2008, so my questions:
1. does the “other reserve” 5 million contains that 1.8 million increase from 7 million to 8.8 million?
2. why is it not called “revaluation reserve”?
3. what is the difference between “other reserve” and “revaluation reserve”?
4. do not we have to recognize that 1.8 million reserved gain now at disposal?
ThanksHi Ban
I’m sorry but I don’t have the question to hand 🙁
Is there anywhere in Equity any indication that the 1.8 has been recognised? If not, then I presume it’s in “Other reserve”
Why it’s not called revaluation reserve – I can’t remember
The difference? It’s in the name! You could call any reserve by whatever name you want …. except the two statutory reserves of Capital Redemption Reserve and Share Premium Account
If the revalued asset has now been sold, then yes, you should recycle the revaluation reserve attributable to that asset through retained earnings within the Statement of Changes in Equity
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