Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Cash flows
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- May 30, 2015 at 11:34 pm #250773
Correct me please:
When calculating acquisitions in investing activities we using nca t account debiting acquisitions, revaluation and crediting disposal depreciation and profit or loss ( if profit on the right if loss on the left).
1)when we are not given acquisition it is “x”
2) how is the revaluation calculated when we are not given acquisition figure ( I guess in general either acquisition or revaluation surplus will be given right?)
3) credit with disposal @ sdrapped price
4) credit with profit/ loss=disposal – NBV
5) cr this acc With acc depn
I guess I’m wrong with profit/loss cause:
NBV=NBV like:
nca in cost+revaluation -acc depn=disposal – profit
So profit is debit right?May 31, 2015 at 10:39 am #250879I am sorry – but I really do not have the time to work through all of this (the exams start tomorrow and I am spending over 6 hours a day answering questions).
I actually go through all of this in the lecture (and you can tell if there has been a revaluation by looking at the Statement of financial position).
June 1, 2015 at 12:21 am #251155the difference between non-current assets of this year and the next year will include both acquisition and revaluation surplus right?
June 1, 2015 at 8:21 am #251205Yes – and also disposals.
If you are looking at the cost of the assets then that is all.
If you are looking at the net book value of the assets (the carrying value) then it is also affected by the depreciation charge for the year.
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