 Let's see how this revaluation will be reported in accounts. Revaluation is now 2.1 million and less net book value as on 1st January 2012. We need 2 years depreciation that is 800,000 and balance comes to net book value on end of 2011 comes to 1.2 so the difference between 2.1 and 1.2 comes to revaluation surplus of 900. Now depreciation will be now on the new value which is 2.1 million and the life is at 3 years. So 1st year depreciation is going to be 700,000. Now see the accounts. Assets accumulated depreciation revaluation surplus. How this entry is required? Assets was 2.1 million. Initially it was 2 million. So what we are doing? We are debiting another 100,000 to the asset account and the accumulated depreciation which we have credited now we are reversing it and we are debiting the accumulated depreciation and the surplus of 9,000 we are crediting. Now the depreciation expense for 2012 is 700,000. The accumulated depreciation is 700,000. Every revaluation reserve we debit and credit retained earnings. So this is another catch here. You know you are charging depreciation 400,000 first year, second year. Now in third year you are charging a depreciation of 700,000 which means you are charging 300,000 extra depreciation. So this extra depreciation you take it out from revaluation reserve because you charge profit 700,000. So profit reduced by 700,000. What we do? We should compensate by debiting the revaluation reserve and crediting the retained earnings. I mean ultimately profit goes to retained earnings so we straight away crediting the retained earnings because we can't go back. So in this particular year we adjusted through retained earnings. Transfer from revaluation to retained earnings is simply this is excess depreciation of 700,000 minus 400,000. Now the revaluation surplus do not sit on the balance sheet in perpetuity. Still there is a balance of 900,000 we reverse only 300,000 so still there is a 600,000 in revaluation reserve. But it is written off over the useful economic life by transferred to retained earnings and this way when the asset is fully depreciated the revaluation surplus should be written down to zero. Let us sell the asset. Let's assume if we are selling the assets on 1st of January 2013 or for 1500. So look here the gain is how much is gained? Try to understand that 2.1 million less 700,000 at the year depreciation so 14 1.4. So now you are selling for 1.5. So there is a gain of 100,000 on disposal and will be taken to income statement. This will be taken to income statement not retained earnings state because you are disposing of an asset. Carrying value minus 1400 and sales value is more than carrying value so there is a profit of 1 million 100,000. Now the proceeds entry 1500,000 and then we have a net book value of 1400,000 and then we have a gain on disposal and the revaluation surplus is 600 will be transferred to retained earnings because you have sold the asset. Any balance after asset have been sold in the revaluation surplus should be returned back to the retained earnings. Now the accounts cash debit, accumulated depreciation debit, asset account credit and gain on disposal credit. So this is how the valued assets depreciated and ultimately sold out. So you have to work out any surplus on revaluation should also be reversed and any gain on sale. The gain on sale should be taken to the income statement and so far surplus on revaluation is concerned that goes to retained earnings state. Thank you very much.