1. Why does the revaluation surplus appear on both statement fo financial position and income statement?
2. Where do we post accumulated depreciation to?
3. If accompany does not make profit, what happen to the preference shareholders?
Ask the Tutor ACCA FA
Revaluation of non current asset
6y ago#11. The revaluation surplus does not appear in the Statement of Profit or Loss (which is what the Income statement is now called). Any increase in the revaluation surplus during the period is show below the SOPL in the Statement of Comprehensive Income simply to inform shareholders what has happened.
2. Accumulated depreciation is not posted anywhere. It appears on the SOFP as a reduction in the carrying value of the non-current assets.
3. They do not get a dividend if there is no profit. (If they are cumulative preference shares, then they will receive the dividend they missed in later years when there is a profit.)
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6y ago#3Thank you for your comment :-)
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