Which of the following events will affect total equity but WILL NOT affect net profit for the current reporting period when recorded?Group of answer choicesThe recoverable amount of an asset is determined to be below its carrying amount, and no prior impairment loss has been recorded.An initial downwards revaluation of a PPE asset.The recoverable amount of an asset is determined to be higher than its carrying amount, and no prior impairment loss has been recorded.An initial upwards revaluation of a PPE asset.

The event that will affect total equity but WILL NOT affect net profit for the current reporting period when recorded is "An initial upwards revaluation of a PPE (Property, Plant, and Equipment) asset."

Here's why:

1. The recoverable amount of an asset is determined to be below its carrying amount, and no prior impairment loss has been recorded: This will result in an impairment loss, which will reduce the net profit.

2. An initial downwards revaluation of a PPE asset: This will also result in a loss, reducing the net profit.

3. The recoverable amount of an asset is determined to be higher than its carrying amount, and no prior impairment loss has been recorded: This will result in a gain, which will increase the net profit.

4. An initial upwards revaluation of a PPE asset: This will increase the asset's value on the balance sheet, thus increasing total equity. However, it will not affect the income statement, and therefore will not affect the net profit for the current reporting period.

The event that will affect total equity but WILL NOT affect net profit for the current reporting period when recorded is "An initial upwards revaluation of a PPE (Property, Plant, and Equipment) asset."

Here's why:

1. The recoverable amount of an asset is determined to be below its carrying amount, and no prior impairment loss has been recorded: This will result in an impairment loss, which will reduce the net profit.

2. An initial downwards revaluation of a PPE asset: This will also result in a loss, reducing the net profit.

3. The recoverable amount of an asset is determined to be higher than its carrying amount, and no prior impairment loss has been recorded: This will result in a gain, which will increase the net profit.

4. An initial upwards revaluation of a PPE asset: This will increase the asset's value on the balance sheet, thus increasing total equity. However, it will not affect the income statement, and therefore will not affect the net profit for the current reporting period.