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Question Ashanti

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Question Ashanti

  • This topic has 0 replies, 1 voice, and was last updated 11 years ago by warren92.
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  • May 13, 2014 at 5:40 pm #168701
    warren92
    Member
    • Topics: 4
    • Replies: 50
    • ☆☆

    I am confused with working 6 from question ashanti from June 2010.

    In working 6 from the examiner’s answer it says:

    there
    will be a revaluation loss of $11·56m – $8m i.e. $3·56m. Of this amount $1·96m ($2·2m less $0·24m transfer for excess
    depreciation) will be charged against revaluation surplus in reserves and $1·6 million will be charged to profi t or loss.

    It says $1.96 will be charged against revaluation surplus in reserves but in the other comprehensive income workings it shows a positive $1.6 m against Revaluation adjustment

    Other comprehensive income for the year, net of tax:
    Available-for-sale fi nancial assets 20 9
    Loss on bond now recognised 0·6 29·6
    Gains on property revaluation 12 6 –
    Revaluation adjustment (W6) 1·6 19·6
    Actuarial losses on defi ned benefi t plan (14) – – (14)
    Share of associate available-for-sale fi nancial assets (W3) 0·9 0·9
    –––––– ––––– –––––––
    Other comprehensive income for the year, net of tax 20·2 15·9 36·1
    –––––– ––––– –––– –––––––
    Total comprehensive income and expense for year 38·08 53·6 10 101·68
    –––––––––––– –––––––––– –––––––– ––––––––––––––

    I can not understand why same 1.6 is charged in the P/L and OCI & why 1.6 charged in the P/L is positive.

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