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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › statement of changes in equity
1. If there has been an annual transfer of excess depreciation charged from revaluation surplus account to the retained earnings (within equity in SOFP), is there a change in the statement of changes in equity?
is there any effect to SOCIE, in debiting the revaluation surplus and crediting the retained earnings?
2. If there has been a disposable of revalued non-current asset, is there a change in the statement of changes in equity?
Thank you
1. Yes – it appears in the SOCIE because the statement is explaining why the balances on the reserves have change.
2. Yes – because the revaluation reserve is no longer relevant and is transferred to the retained earnings.