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    Question

    Which is the correct match for increase in the carrying

    value of Land and Buildings on account of revaluation?
    A Would affect Cash inflows from Investing Activities Correct Answer Incorrect Answer
    B Would affect Cash outflows from Investing Activities Correct Answer Incorrect Answer
    C Increase will be the part of unrealized profits Correct Answer Incorrect Answer
    D Increase will be the part of Non-Current Liabilities Correct Answer Incorrect Answer
    E Increase will belong to the Current Assets Correct Answer Incorrect Answer

    Solution

    Increase will be the part of unrealized profits. The difference in the carrying amount of asset and the revaluation amount goes to the revaluation reserve which indicates the unrealised profits.

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