In Relation to a Revaluation Surplus, an Entity

question 1

Multiple Choice

In relation to a revaluation surplus, an entity:

• A) cannot use this surplus for the payment of future dividends.
• B) can transfer this surplus to retained earnings when the asset is derecognised or used.
• C) cannot transfer this surplus to any other reserve account.
• D) can transfer the surplus to the current period profit or loss when the asset is disposed of.