When a property, plant and equipment asset is derecognised through sale, any associated asset revaluation surplus must always be transferred to retained earnings.

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When a property, plant, and equipment asset is derecognised through sale, the associated asset revaluation surplus may be transferred directly to retained earnings, but only the portion that represents the excess of the revalued amount over its original cost. The part of the surplus that represents realized gains (i.e., the difference between the sale proceeds and the carrying amount of the asset) is recognized in profit or loss.

When a Property, Plant and Equipment Asset Is Derecognised Through