ASSET REVALUATION


(Guest)

Suppose land is revalued upwards from a book value of Rs 2 crores to Rs 4 crores. so there is an increase in assets by 2 crores. but why is it that there will be an equal increase in equity as well? also, shouldn't this asset appreciation have an effect on the income statement as well (greater depreciation, for instance)

one more question... what is an arm's length transaction (please explain in simple terms)