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What is the treatment of cumulative adjustment on retained earnings resulting from adopting IFRS.

Can i distribute this to shareholders?

Heres the case:

A vehicle have been retired after the adoption to IFRS, this asset has a corresponding gain on convergence which is recorded in the retained earnings for $1000.
Can I affect (realized it to p&l) the retained earnings of the gain on convergence when the asset is disposed? Or do nothing?

asked Sep 4, 2017 in IFRS 1 - First-time Adoption of International Financial Standards by Zarah

1 Answer

0 votes
As per IFRS any unrealized gain can not be used for distribution of profit to shareholders
answered Sep 7, 2017 by veshmalahotra Level 4 Member (9,780 points)
What particular IFRS support your answer? can you give me the standard.

Thank you so much