AC & Auditing Q.112
0. Which of the following statements about reserves is incorrect?
- A
There is no definition of a reserve in the accounting standard or in the Corporations Act.
- B
Reserves may be established by normal practice.
- C
Movements in a revaluation reserve can be reclassified in a later period as part of profit or loss.
- D
The reserve's accounts of a company are regarded as equity.
