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?
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patil123·
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
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tejalSupporter·
the video for example 1 is still missing
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tejalSupporter·
maybe we dont need it as the solution the example is self explanatory. Thank you :)
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P2-D2Tutor·
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.
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nasif·
We don't find the video for example one
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Rohan·
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 .
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?
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.
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 .
Thanks