How Is Revaluation of Non-Current Assets Accounted For

question 73

Multiple Choice

How is revaluation of non-current assets accounted for?

• A)Revaluation surplus is always booked to profit and loss.
• B)Revaluation loss is booked to other comprehensive income.
• C)Cumulative revaluation loss is booked to profit and loss.
• D)Revaluation surplus is not recognized in other comprehensive income.

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Definitions:

Financial Leverage

Utilizing borrowed money to enhance the possible gains from an investment.

Tax Rate

The proportion of tax that an individual or business must pay on their earnings.

ROE

Return on Equity; a measure of the profitability of a business in relation to the equity, calculated as net income divided by shareholder equity.

Assets

Resources owned by a company that have economic value and can be converted into cash, including but not limited to property, plant, equipment, and intellectual property.