Which of the following items does not give rise to a reclassification adjustment from components of other comprehensive income to profit and loss?
A) Disposal of a foreign operation;
B) De-recognition of revalued assets;
C) Sale of a foreign subsidiary;
D) De-recognition of available-for sale financial assets;
E) Cash flow hedge forecast transaction that affects profit or loss.

Question

Quizplus · Accepted Answer

Revaluation surplus from revalued assets is transferred directly to retained earnings upon de-recognition and does not pass through profit or loss, hence no reclassification adjustment is needed.

Which of the Following Items Does Not Give Rise to a Reclassification