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Meno Berhad purchased a piece of land on 1 January 2015 for RM 3 million. It is the policy of the company to use the
Meno Berhad purchased a piece of land on 1 January 2015 for RM 3 million. It is the policy of the company to use the revaluation model to account for its land. The revaluation exercise is carried out an interval of 5 years. On 31 December 2019, an independent valuer valued the land at RM 4.8 million. The board of directors decided to incorporate this amount n the statement of financial position and to transfer the surplus to the statement of profit or loss.
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Briefly explain whether the action by the board of directors is appropriate.
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