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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?
It 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.A 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.
Dear 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.
But 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.
Therefore 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???
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