When a Property, Plant and Equipment Asset Is Derecognised Through

question 40

True/False

When a property, plant and equipment asset is derecognised through sale, any associated asset revaluation surplus must always be transferred to retained earnings.

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Definitions:

Calcium Carbonate

A chemical compound, CaCO3, found in rocks such as limestone, chalk, and marble, and is the main component of pearls and the shells of marine organisms.

Sedimentary Rock

Rock formed by the accumulation and compaction of sediment, which can include minerals, organic matter, or the remains of organisms.

Dissolution

The process by which a solid, liquid, or gas forms a solution in a solvent, often related to the disintegration of minerals in water.

Gray Limestone

A sedimentary rock composed mainly of calcium carbonate (CaCO3), typically characterized by its gray color, used in building and as an aggregate.