13.14 - Share buybacks The group accountant of Cruise Ltd has been given the task of accounting for a repurchase of shares by the company. The company is repurchasing 5 million shares at a cost of $2 each, paying for this in cash. However, the accountant is unsure which accounts should be reduced by the share buyback. The current equity position of the company is as follows. Share capital General reserve Asset revaluation surplus Retained earnings 120 million 50 million 10 million 65 million Required Write a report to the group accountant advising how to account for the buyback of shares. Provide justification for your advice