Reconciliation of equity
Capital and reserves (as previously stated) as at 01 November 2015: £3,406,540
Movement in revaluation reserve( Opening transition adjustment of deferred tax liability: £329,595
Capital and reserves (as restated) as at 01 November 2015: £3,076,945
Capital and reserves (as previously stated) as at 01 November 2016: £2,760,258
Movement in profit and loss reserve:£139,648
Capital and reserves (as restated) as at 01 November 2016 £2,291,037
Reconciliation of profit and loss
Profit for the year (as previously stated) at 31 October 2016: Profit £7,661
Recognition of profit on revaluation of investment property £821,461
Deferred tax provision on revaluation of investment property: £139,648
Profit for the year (as restated) at 31 October 2016: £689,474
Notes To Reconciliation
Fair Value Reserve and Deferred Tax
Prior to the adoption of FRS 102 the company, accounted for revaluation reserve in the balance sheet.
FRS 102 requires fair value adjustment on investment properties to be recognised in the profit and loss. FRS 102 also requires that deferred tax must be provided on the revaluation of investment properties, which is charged to the the profit and loss.