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Sir
the draft financial statement of plethora for th y/e 31 Dec 20×9 are being prepared and the accountant has requested your advice on dealing with the following issues.a building has been let out for a number of years. it had a fair value of $550 000 at 31 Dec 20×8 and $740 000 at 31 dec 20×9.
explain how this building should be accounted for in the financial statement.
sir I though the difference should go to other comprehensive income under revaluation, sir i dont understand as the answer says it going in the SOPL.Sir I though when is a fv is statement of other comprehensive income and when the fv raise, the difference then go under SOPL.Sir another question.
Do the following abbreviation allowed in the exam?SOPL statment of profit and lost
SOFP statment of fiancial postion
Rbles receivable
Pbles payablesif yes what abbreviation for other comprehensives income.
thanksthe property falls under IAS 40 – Investment Property,as it has been let out for rental purposes for a number of years, the fair value gain of $190,000 ($740,000-$550,000) would be credited to the statement of profit or loss as other income, you made the error of thinking it was a revaluation gain in accordance with IAS 16.
Thanks DOA but that question really was addressed to me. By all means get involved in the general forums but Ask the Tutor is directed at me
However, you are right this time, so no harm done
Have you watched any of my F7 video lectures – particularly the first on in the consolidation series?
Yes, to abbreviations
Josy, what about OCI?
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