Transfer of revaluation surplus to retained earnings

Learning objectives

• Calculate the annual transfer from the revaluation surplus corresponding to the excess depreciation.L3
• Record the transfer from the revaluation surplus to retained earnings.L3, L4

Normative references

• IAS 16 §41Transfer of the revaluation surplus to retained earnings, not through profit or loss, when the asset is derecognised or as the asset is used; in the latter case, the amount transferred is the difference between depreciation based on the revalued carrying amount and depreciation based on the original cost.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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