In Relation to an Asset Revaluation Surplus, an Entity

question 21

Multiple Choice

In relation to an asset revaluation surplus, an entity

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

---

Definitions:

Right to Sue

The legal authority granted to an individual or entity to bring a lawsuit against another party.

Neutral Third Party

An unbiased individual or group engaged to mediate or arbitrate between conflicting parties.

Mediation

A form of alternative dispute resolution where a neutral third party, the mediator, helps disputing parties find a mutually satisfactory solution.

Dispute

A disagreement or argument about something important.