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June 14, 2022 at 7:46 pm
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.
John Moffat says
June 15, 2022 at 6:49 am
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).
July 4, 2022 at 8:05 pm
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.
July 25, 2022 at 7:41 pm
what lecture would that be? as Depreciation on evaluation was not covered in this one.
July 26, 2022 at 6:39 am
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.
March 14, 2022 at 7:56 pm
Hi, what about the part of looking at the new depreciation, and moving the excess from the revaluation surplus to the retained earnings?
March 15, 2022 at 4:46 pm
That is explained in the lectures.
March 14, 2022 at 7:04 pm
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?
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