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Why revaluation reserve are not called free reserve?
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Because of the origin of revaluation reserve. It comes into existence when say management decides its land is actually valued at Rs.20 lakh instead of Rs. 15 lakh, it will increase the asset value by Rs. 5 lakh and create a reserve of Rs. 5 lakh. In relaity this profit has not been realised. It is just a book entry. So, law says don't take it as Free Reserve i.e. it is not available for distribution as dividend to shareholders.
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