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Sir , in kaplan exam kit regarding right of use plant with cost $20m and acc’ dep of $5m . The method of depr was reducing balance but
Kaplan calculate it
Costs 1.4.2008= $20m
Acc’ dep =( $5000)
25%* 20m=(5000)
Value = $10mBut I suppose it is $20m-$5m= ca $15m
Dep for the year = $15m * 25%= $3.75
Value = $11.25m
Do will have to use the original costs of the right of use plant to calculate subsequent depreciation for the year?I do not get it , because this is reducing balance method according to question.
Your authority on this is needed sir,Guild me on this.
What’s the name of the question?
I’m not sure that I totally believe your accuracy in your post! Are you 100% certain that the question tells you that the reducing balance rate should apply to right-of-use assets …
… or that the reducing balance basis mentioned in the question does not relate to “other property, plant and equipment”
Please check … and still let me know the name of the question
What does the last sentence in paragraph 3 in the note (i) Non-Current Assets say?
At 31 March 2009 the property was valued at $24.9 million.
Meaning leasehold property at 1April 2008 was $2%.2m .
Dep for the year = $25.2m × 1/14= $1.8
Carrying amt $23.4million with a revaluation of $1.5m
For this one I can calculate this sir and does relate to my question .I asking for right of use asset that was subsequently depreciated using initial cost after deducting the acc’ dep using reducing balance method .
Sir, I don’t get it please could you help my curiosity bcos I am stock here as my exams is just near .
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