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Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Hello John, I’m little bit confused about this video. Could you please give me the double entries?
You can see all of the double entries in the printed answer in the free lecture notes 🙂
Dear John,
I’m not sure if I missed it, But I haven’t noticed you mentioning the Useful Economic Life for the Building either in your lecture or In the notes/question.
I was only able to find it in your Answer on Pg 134.
I also found it difficult to calculate the depreciation charge for the 2nd half of the year (1 JUL – 31 DEC) since you didn’t mention this in your lecture.
However,
Could you please be kind enough to explain how you arrived at “$44,522” as the Depreciation charge, The Value of “$72,000” & why we divided “1,116,000 ÷ by 72,000”.
Thank You!
Before the revaluation, the depreciation charge was 2% x 3,600,000 = 72,000 per year, and the expected useful life for 2% a year was 50 years.
The accumulated depreciation was 1,080,000 and so they must have owned it for 1,080,000/72,000 = 15 years,
It was revalued 6 months later, by which time they had owned it 15.5 years, and so the remaining life is then 50 – 15.5 = 34.5 years.
Dear John,
I’m not sure if I missed it, But I haven’t noticed you mentioning the Useful Economic Life for the Building either in your lecture or In the notes/question.
I was only able to find it in your Answer on Pg 134.
I also found it difficult to calculate the depreciation charge for the 2nd half of the year (1 JUL – 31 DEC) since you didn’t mention this in your lecture.
However,
Could you please be kind enough to explain how you arrived at “$44,522” as the Depreciation charge, The Value of “$72,000” & why we divided “1,116,000 ÷ by 72,000”.
Thank You!
I have seen accountants expensing/reducing upward revaluation reserves in future years.Is this correct?
Upon asking reply received is its not the actual profit so can’t show in books?
For ex: Say £500K upward revaluation being expensed as 50K for next 10 yrs.
Thanks.
As explained in the lectures. depreciation is charged on the revalued amount, and the excess over the ‘new’ depreciation and the ‘original’ depreciation may be transferred each year from the revaluation reserve to retained earnings (which is the same effect as what you have written).
Thank you John.
Could you please help me to refer any videos or notes to go through charity accounting/Not for profit as its slightly different from pvt and public limited org. Moreover its not covered anywhere in ACCA , CIMA or anywhere.
Any guidance will be highly appreciated.
Thanks.
what lecture would that be? as Depreciation on evaluation was not covered in this one.
As I do state in the lecture, it is covered in the lectures on Accounting for Limited Companies, because it is only applicable to limited companies.
Hi, what about the part of looking at the new depreciation, and moving the excess from the revaluation surplus to the retained earnings?
That is explained in the lectures.
The transfer of the change in depreciation from the rev. reserve to the retained earnings, is this for the 1st year only? or would you have to do this for every year after too?
Every year.