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With reference on the question from the BPP textbook: (link below) https://books.google.com.my/books?id=JSQvDwAAQBAJ&pg=PA407&lpg=PA407&dq=non+current+asset+asset+held+were+impaired+by+$25000+f7+book+value+at+revaluation&source=bl&ots=NOyDT4cXAJ&sig=MHMyoxNijbjdCv6vEcKYttJeLAs&hl=en&sa=X&ved=0ahUKEwj559eb84bcAhWMsI8KHYn9BYAQ6AEIOjAB#v=onepage&q=non%20current%20asset%20asset%20held%20were%20impaired%20by%20%2425000%20f7%20book%20value%20at%20revaluation&f=false
I want to know why the revaluation during the year related to the land is not included?
And also can you explain the treatment for NCA (given in the notes) like what should we do with that information. Lastly how do you get the changes in equity for the issue of share capital during the year. How do they derive OSC 600 and share premium of 40Given in question:
During the year company had following changes to capital structureissue of 200K $1 ordinary bonus shares capitalising its share premium reserve
issue of 200K $1 ordinary bonus shares (issue price is $1.40 per share)So does this means $0.40 is the bonus right.
Also given in question opening balance of equity:
OSC $2.8m
Premium $1.15m
RE $2.12m
Rev surplus $7.50I dont get how to use/asses this information to produce SOCE.
Okay i get that for the changes total issue of share capital is 600 @$1 so $600 but for the premium i dont get how they got $40
I happen to stumble across this on google. its the old version notes. I wonder where can i get the answer to the example on this note. https://opentuition.com/files/2015/09/ACCA_F7ch3.pdf
@aarina said:
I happen to stumble across this on google. its the old version notes. I wonder where can i get the answer to the example on this note. https://opentuition.com/files/2015/09/ACCA_F7ch3.pdfHi,
This is old F7 material and you should focus on the updated FR materials on the website.
Thanks
@aarina said:
With reference on the question from the BPP textbook: (link below) https://books.google.com.my/books?id=JSQvDwAAQBAJ&pg=PA407&lpg=PA407&dq=non+current+asset+asset+held+were+impaired+by+$25000+f7+book+value+at+revaluation&source=bl&ots=NOyDT4cXAJ&sig=MHMyoxNijbjdCv6vEcKYttJeLAs&hl=en&sa=X&ved=0ahUKEwj559eb84bcAhWMsI8KHYn9BYAQ6AEIOjAB#v=onepage&q=non%20current%20asset%20asset%20held%20were%20impaired%20by%20%2425000%20f7%20book%20value%20at%20revaluation&f=falseI want to know why the revaluation during the year related to the land is not included?
And also can you explain the treatment for NCA (given in the notes) like what should we do with that information. Lastly how do you get the changes in equity for the issue of share capital during the year. How do they derive OSC 600 and share premium of 40Given in question:
During the year company had following changes to capital structureissue of 200K $1 ordinary bonus shares capitalising its share premium reserve
issue of 200K $1 ordinary bonus shares (issue price is $1.40 per share)So does this means $0.40 is the bonus right.
Also given in question opening balance of equity:
OSC $2.8m
Premium $1.15m
RE $2.12m
Rev surplus $7.50I dont get how to use/asses this information to produce SOCE.
Hi,
The link doesn’t give me full access to all the pages in question, however I can say the following:
– The revaluation gain on the land is shown at 120 (500 – 380) under the revaluations surplus heading.
– The first issue of shares is the bonus issue and hence we would CR Share capital DR Share premium.
– Is the second issue not a new issue of shares? Also are the number of shares issued correct?
– The balances given are used as the b/f figures on the SOCIE.
Thanks
Hi sir you can check this link for the question page 423 for the extended notes on the shares issue. I still dont get how they get the price for the share premium of $40K like how much is the share price even for the premium is $1 is par and $1.40 is the issue price. so $0.40 suppose to be premium right?
Hi,
For the bonus issue we would have processed the following entry:
DR Share premium $200,000
CR Share capital $200,000 (200,000 shares @ $1 par)For the issue of 400,000 shares at $1.40 we would have processed the following entry:
DR Bank $560,000 (400,000 shares at $1.40)
CR Share capital $400,000 (400,000 shares at $1 par)
CR Share premium $160,000 (balancing figure)If you then net-off the two entries to share premium then you should find the answer to your question.
Thanks
actually why do you need to net off? whats the reason. why do you need to capitalise share premium?
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