Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Chapter 3 example 1
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by MikeLittle.
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- May 6, 2015 at 2:19 pm #244343
Hi mike,
Just covering basics and am a little stuck….not a good sign!
On point 3, the asset was impaired by $35000, the revaluation surplus contains $25000 relating to the asset.
I understand that reduce revaluation surplus by 25000 but what’s the treatment of the remaining 10000?
ThanksMay 6, 2015 at 3:58 pm #244370There have been countless posts on is very point on this thread! Did you check before you posted?
The impairment has already been recorded but recorded incorrectly because 25,000 of the 35,000 should have been debited to revaluation reserve
OK?
May 6, 2015 at 4:15 pm #244375Sorry mike I must admit I didn’t check. Which is a first because I usually do……….honest!
I’ve seen your response to another member now in that impairment due to general price changes are not accounted for (except in so far as previously revalued amounts)
Thanks for your reply
May 6, 2015 at 4:37 pm #244381No worries – keep posting 🙂
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