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

Question

Quizplus · Accepted Answer

De-recognition of revalued assets does not give rise to a reclassification adjustment from components of other comprehensive income to profit and loss because the revaluation surplus related to a revalued asset is directly transferred to retained earnings upon disposal or de-recognition of the asset, not through profit or loss.

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