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- This topic has 1 reply, 2 voices, and was last updated 2 years ago by P2-D2.
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- October 23, 2022 at 10:23 pm #669755
could you please explain further on how you revalued the Land and Building? …
I revalued the building after the depreciation in prior yr.
being 4,500,000 to 5,400,000 = gain 900,000
and land from 500,000 to 600,000 = gain 100,000
charged both to Revaluation reserve. being £1,000,000
(please clarify; do both gains go to OCI? or just building OCI and Land to P/L)Also, i then depreciated for the building for remaining ;life of 45yr , being 120,000
a difference of 20,000 from original cost depn. of 100,000.
so this is then the transfer of revaluation reserve to retained earnings…of 20,000Im not sure if any of this would be right?
land does not get depreciated. and the revaluation on the land will always fluctuate,(usually appreciate) so therefore only gains or losses are recognised on sale of land.is my terminology wrong have i missed something please clarify. just slightly confused.
October 30, 2022 at 5:06 pm #670327Hi,
Yes, what you’ve done is correct. I think there is a small mistake in the notes/video.
Thanks
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