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The three types of the accounting treatment of Investment Fluctuation Reserve are.
When the book value and market value of the investment are the same- The amount of investment fluctuation reserve is transferred to partners’ capital account in their old profit-sharing ratio.
When the market value of investments is less than the book value- In this case, the treatment on investment fluctuation reserve depends on the amount of decrease.
When there is an increase in the market value of investment- The amount of investment fluctuation reserve is distributed among partners and an increase in the value of the investment is credited to revaluation account.