Economics · Financial Accounting
Consider the following statements regarding the accounting treatment for Property, Plant, and Equipment (PPE) under IFRS/IAS 16: (i) When an entity revalues its land and buildings, it is compulsory to make an annual transfer of 'excess depreciation' from revaluation surplus to retained earnings. (ii) Any revaluation surplus arising on revaluation of PPE is included directly in the profit or loss statement to arrive at profit before tax. (iii) The revaluation surplus is accounted for as an adjustment to cash inflows from operating activities. Which of the statements given above are False?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only (ii) and (iii)
- 2Only (i) and (ii)
- 3None of them
- 4All (i), (ii), and (iii)✓
Correct answer
All (i), (ii), and (iii)
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