Hello there
In cashflow there are two methods which is the direct and indirect method
So for the indirect method we have to adjust profit in order to enter the figure in the cashflow from operating activities
So I was wondering whether you adjust revaluation gain on assets in the profit since revaluation is not even recorded in income statement
So we don't need to adjust the profit with revaluation gain right ??
Ask the Tutor ACCA FA
Revaluation reserve
5y ago#1Correct. It is not a cash flow and it will not appear as part of the profit in the SOPL.
Where is obviously might be relevant is in calculating the sale proceeds from any non-current assets sold, as I explain in my free lectures.
Sign in to reply to this topic.