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- This topic has 7 replies, 2 voices, and was last updated 7 years ago by John Moffat.
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- July 23, 2016 at 11:59 am #328492
1. According to the IFRS, loan notes can be classified as current or non current liabilities.
Could you explain briefly why?2.What’s the difference between statutory reserves and non statutory reserves?
July 23, 2016 at 2:45 pm #328515It depends whether they are repayable within 1 year (current liability) or more than 1 year (non-current liability). That is always the rule for liabilities.
Loan notes are usually repayable in more than 1 year unless the question says differently.
Statutory reserves are those required by law – retained earnings, share premium, and revaluation.
Non-statutory are any other reserves the company chooses to create.July 26, 2016 at 11:50 am #329204Could you give me an example of Non-statutory reserves?
Thanks.
July 26, 2016 at 5:06 pm #329252A general reserve and a plant replacement reserve. But they are only examples – the company can create whatever reserves it want, but they don’t have to create these reserves by law.
August 31, 2016 at 10:20 am #336504Dear sir,
A surplus on revaluation appears on the SOCIE.
However, in the BPP book, it says that gains on property revaluation appears in the statement of profit or loss and other comprehensive income and SOCIE also.Could you please clarify?
Thanks.
August 31, 2016 at 3:49 pm #336566But what do you want me to clarify? What BPP write is correct.
As far as Paper F3 is concerned, the only difference between the Statement of Profit or Loss and Other Comprehensive Income, and the Statement of Profit and loss, is that revaluation gains are added on at the bottom.
August 31, 2016 at 5:40 pm #336607Therefore a gain on revaluation is added with the net profit at the bottom(hence obtaining the total comprehensive income) and then it is also recorded in the SOCIE???
September 1, 2016 at 6:51 am #336692Correct 🙂
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