IFRS 5 – NCA-HFS – ACCA Financial Reporting (FR)
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>
In IFRS5, revaluation model, when we revalued the asset to fair value immediately before classification as held for sale, do we credit the gain to revaluation surplus in statement of financial position?
And when do we transfer revaluation surplus to retained earnings? At the date of disposal or at the date when the asset is classified as held for sale?
good afternoon sir i need just you told NCA-HFS in financial position what amount shoulde added and were it will come one more is statement of PL were will come sir please reply
the video for example 1 is still missing
maybe we dont need it as the solution the example is self explanatory. Thank you 馃檪
Am I right that NCA held for sale are valued at the lower of carrying value and fair value less cost to sell only when using revaluation model, please?
We use the same rules whether it is held under the cost or revaluation model. The NCA-HFS is held at the lower of its carrying value and FVLCTS.
Just note that when held under the revaluation model, the asset is revalued to FV first before then eing classified as a NCA-HFS under IFRS5.
We don’t find the video for example one
What is the answer to Example 1?
Dep – 11,000 (SPL)
NCA HFS – 73,000 (SFP)
Fair value less cost to sell – 68,000
carrying value – 73,000
So asset is valued at fair value less cost to sell
What is missing?
Dep ( SPL ) – 11,000
Impairment ( SPL ) – 5,000 (73,000 – 68,000)
Any reduction in value is recorded as an impairment through P & L
NCA HFS ( SFP ) – 68,000
NCA HFS is valued at the lower of the carrying value and fair value less costs to sell .
? yes i think thats right
there is no video for example 1?
We will upload it once it has been recorded.
Thanks