Under the accounting standards, which of these is included in the calculation of a company's profit or loss (not including other comprehensive income in the definition of profit)?
$\bullet$Downward revaluations of non-current assets, not requiring adjustment to a revaluation surplus.
$\bullet$Upward revaluations of non-current assets requiring adjustment to a revaluation surplus.
$\bullet$Gains or losses on remeasuring investments in equity instruments.
$\bullet$Adjustments from translation of the financial statements of a foreign operation.
A) 1
B) 2
C) 3
D) 4

Question

Quizplus · Accepted Answer

Under accounting standards, only downward revaluations of non-current assets that do not require adjustment to a revaluation surplus are included in the calculation of a company's profit or loss. Upward revaluations of non-current assets that require adjustment to a revaluation surplus, gains or losses on remeasuring investments in equity instruments, and adjustments from translation of financial statements of a foreign operation are not included in the definition of a company's profit or loss, but rather are included in other comprehensive income.

Under the Accounting Standards, Which of These Is Included in the Calculation