01-27-2010, 04:30 AM
Dear
As per IAS 16 Paragraph 41,when the revalued assets are decrognised its surplus will be transferred from revaluation surplus to the retained earnings.
But as Per Companies Ordinance the revaluation surplus is not a part of the equity,so the revaluation surplus will be transferred to the profit and loss account at the time of derognition.
As per companies ordinance company not make ploicy to transfer the surplus to retained earnings.So company cannot make such policy.
Regards,
Majid
As per IAS 16 Paragraph 41,when the revalued assets are decrognised its surplus will be transferred from revaluation surplus to the retained earnings.
But as Per Companies Ordinance the revaluation surplus is not a part of the equity,so the revaluation surplus will be transferred to the profit and loss account at the time of derognition.
As per companies ordinance company not make ploicy to transfer the surplus to retained earnings.So company cannot make such policy.
Regards,
Majid
