What would happen to the amount that is still in the OCE ( the 1.5m revaluation surplus )??Is it going to stay there like that or what treatment would it have??
I keep seeing that the answers in the back of the lecture notes seem to have errors. The answer given for this example says $1,400 should go to revaluation reserve (doesn’t add up correctly), and then also says that there is no impairment but instead it is deducted from the revaluation movement.
Please could someone take a look at them, I have to keep coming back to the lectures to check to your answers when I redo the examples, as the answers in the notes are wrong fairly often.
There is some inconsistency between the solutions you provided in this video and what we have in the study notes. The video had revaluation gain of 1,500, but the study note has 1,400. The video had impairment of 300, but the study note had no impairment. Based on my understanding, I think we should have had a revaluation gain of 1,200 and zero impairment. My understanding goes thus; Carrying amount of the NCA just before reclassification to HFS is 13,900 (i.e. 14,000 – 100); revaluation gain is 1,200 (15,400 – 300 – 13,900). Can you please explain why my understanding is wrong, and confirm which of the solutions is correct (video or study note).
In the December 2014 Q1, vi) the note provides a value in use figure as well. I am confused as to why it is there. Is it simply just trying to confuse the reader as you don’t use this figure in the Q?
Firstly I would like to say thank you for the lectures, they are helping tremendously.
I noticed that lecture 12 and 14 are duplicated (IFRS 5) and that IAS 36 video is missing maybe indicating that it was supposed to be IAS 36 to be uploaded in stead of IFRS 5 twice.
Thanks again for the lovely videos and if I see any more duplication of videos I’ll bring it to your attention.
usama93 says
Hi teacher,
What would happen to the amount that is still in the OCE ( the 1.5m revaluation surplus )??Is it going to stay there like that or what treatment would it have??
jcdawson89 says
Hi
I keep seeing that the answers in the back of the lecture notes seem to have errors. The answer given for this example says $1,400 should go to revaluation reserve (doesn’t add up correctly), and then also says that there is no impairment but instead it is deducted from the revaluation movement.
Please could someone take a look at them, I have to keep coming back to the lectures to check to your answers when I redo the examples, as the answers in the notes are wrong fairly often.
Thanks
bahuuj says
thank you sir for help full lectures.
what about the gain from the NCA held for sale($15,100,000) and $15,600,000 =500,000.
Nojeem says
Hi Tutor,
There is some inconsistency between the solutions you provided in this video and what we have in the study notes. The video had revaluation gain of 1,500, but the study note has 1,400. The video had impairment of 300, but the study note had no impairment. Based on my understanding, I think we should have had a revaluation gain of 1,200 and zero impairment. My understanding goes thus; Carrying amount of the NCA just before reclassification to HFS is 13,900 (i.e. 14,000 – 100); revaluation gain is 1,200 (15,400 – 300 – 13,900). Can you please explain why my understanding is wrong, and confirm which of the solutions is correct (video or study note).
worldbeauty says
Sir,i feel you misrepresented the fair value and carrying value by switching them… And there is no impairment too…aplease which is correct
betg says
Great Lecture.
Thanks a lot
shahimk says
This example was from a past paper question, It was tested in December 2014 Q1, vi).
P2-D2 says
Hi,
I think everything is now in order. Hopefully it hasn’t caused anyone too much stress.
Thanks
lwahnon8 says
Hi,
In the December 2014 Q1, vi) the note provides a value in use figure as well. I am confused as to why it is there. Is it simply just trying to confuse the reader as you don’t use this figure in the Q?
Naz says
Hi
Have the notes been amended please? I am not sure how the 1400 is calculated as the gain on revaluation. I am getting 1200.
pinkcessstef says
Thanks very much for your videos, very informative.
P2-D2 says
Thanks for pointing it out folks. We’ll do our best to get it sorted in the next few weeks.
Thanks too for the kind comments, glad that you’re finding the lectures useful.
Paul says
Dear Lecture Thanks a lot,
Kristian me too i noticed it , i think they will change it asap
Regards
Kristian says
Good Day Sir,
Firstly I would like to say thank you for the lectures, they are helping tremendously.
I noticed that lecture 12 and 14 are duplicated (IFRS 5) and that IAS 36 video is missing maybe indicating that it was supposed to be IAS 36 to be uploaded in stead of IFRS 5 twice.
Thanks again for the lovely videos and if I see any more duplication of videos I’ll bring it to your attention.
Kristian.