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Revaluation is closed by adjusting the asset values in the accounting records to reflect their fair market value. This typically involves updating the asset's carrying amount on the balance sheet and recognizing any gains or losses in the income statement. Once the adjustments are made, the revaluation surplus is recorded in equity, ensuring that the financial statements accurately represent the company's asset values. Finally, any necessary disclosures are made to inform stakeholders of the changes.

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3w ago

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Related Questions

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