All items of income and expense that arise during a financial period must be included in profit or loss.
e.g. changes in a revaluation surplus. These items are not included in the determination of the profit or loss that arose during a financial period. Instead, the balance of equity is directly adjusted.
Learning objective 5.4

Question

Quizplus · Accepted Answer

The statement is false. Changes in a revaluation surplus are included in Other Comprehensive Income (OCI) and not in the determination of profit or loss. The balance of equity is directly adjusted for OCI.

All Items of Income and Expense That Arise During a Financial