Consider the following note on reserves in an annual report.

1. How much of the $76 587 would be shown on the face of the balance sheet?
2. Could a bonus issue be made out of:

a. The revaluation surplus?

b. The general reserve?
3. If the company wanted to increase general reserves to $10 million, what journal entry would be made?

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Note 24 Reserves Composition Revaluation surplus Foreign currency translation reserve Movements Revaluation surplus Opening balance Transfer to retained profits Closing balance Foreign currency translation reserve Opening balance Net exchange, differences on translation of foreign controlled entities, net of hedge Transfer to retained profits Closing balance Consolidated entity 2015 $000 2016 $000 22 051 54 536 76 587 22308 (257) 22 051 22 308 (5941) 16367 (3958) 54 536 22 308 22308 (5 941) 47758 64 435 (53699) (5941) Parent entity 2016 $000 22824 2015 $000 22824 22 824 22824 22 824 22 824 22824 22 824 |. |