What is the treatment of cumulative adjustment on retained earnings resulting from adopting IFRS.

Question

Can i distribute this to shareholders?

Heres the case:

A vehicle have been retired after the adoption to IFRS, this asset has a corresponding gain on convergence which is recorded in the retained earnings for $1000.
Can I affect (realized it to p&l) the retained earnings of the gain on convergence when the asset is disposed? Or do nothing?

Answer 1

As per IFRS any unrealized gain can not be used for distribution of profit to shareholders

Comments

What particular IFRS support your answer? can you give me the standard.

Thank you so much