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July 19, 2020 at 11:35 am
hi Sir, thank you so much for teaching us i just have one question, why did we deduct 325 as impairment ( OCI ) ? we already used that from the surplus which cancels it off and remaining 50 as impairment why did we deduct 325 from OCI?
July 22, 2020 at 10:09 am
325 was already in OCI from previous revaluation and subsequent transfer of excess depreciation, at the start of year 20×7, so to net it off at the end of year we first set of 325 of Impairment to OCI and remaining to SPL
July 23, 2020 at 9:51 am
okay thanks i didnt know oci carrys balance as well because i thought even oci is yearly basis
July 16, 2020 at 3:47 pm
I like the slogan stick to that and you wont go too far wrong )
July 7, 2020 at 6:18 am
Sir , should we not first transfer 375 from ppe to impairment and then from impairment to sopl and oci
May 31, 2020 at 8:13 am
Can we not show Impairment at Nil in Other comprehensive income as we had 325 income and Loss of 325 in current year.
Will this be incorrect representation
June 9, 2020 at 9:17 pm
I don’t think it would be a mistake, but showing Nil could gain some marks. It would show the reviewer that you understand that OCI was some number before, and after entries there’s nothing left.
April 12, 2020 at 5:19 pm
Hi Cris, What is the difference between impairment and revaluation downwards? Please explain. Thank you.
June 9, 2020 at 9:15 pm
In this case, basically none to my opinion. If it was not stated that they did impairment review, if they just did year-end revaluation and got 600,000, we would do everything the same
February 17, 2020 at 7:12 pm
Hi, Why we didn’t put on SFP revaluation surplus?
June 9, 2020 at 9:12 pm
What exactly? There’s a lot going on here and many accounting entries
February 11, 2020 at 6:39 pm
Hello Just to be sure … so here the « revaluation surplus » will be 0 right ? Thanks
June 9, 2020 at 9:07 pm
Hi! Yes, exactly
February 6, 2020 at 3:36 pm
From where that 50 came in depreciation?
March 13, 2020 at 1:37 am
it is the depreciation amount that would have been charged had the asset had not been revalued. depreciation= 1000/20 50 per annum
October 16, 2019 at 11:23 am
Sir, could you please upload a video on ‘Reversal of Impairment’ as well?
April 27, 2019 at 7:40 am
Do we have to transfer excess depreciation to retained earnings every year?
May 20, 2019 at 2:30 pm
We aren’t obliged to do so but it is best practice.
April 20, 2019 at 12:37 pm
The depreciation charge for the year that was recorded in the Statement of Profit or Loss for the year ended 31st Dec 20×7 should have been 50,000 rather than 75,000. The company wishes to transfer the excess depreciation charge to retained earnings directly from the revaluation surplus reserve.
June 9, 2020 at 9:10 pm
Entries would be:
Dr Acc depreciation (SFP) 75,000 Cr Depreciation charge (SPL) 75,000 Dr Revaluation Surplus (SFP OCI) 25,000 Cr Retained Earnings (SFP) 25,000
April 18, 2019 at 9:41 am
The sentence below wasn’t use in the solution: The company opts to transfer any excess depreciation on the revalued amount to retained earnings. I think the 25, 25 excess will not be charged from the surplus. Pls I need more light on that.
April 18, 2019 at 11:59 am
It’s an optional transfer but generally considered to be ‘best practice’
November 10, 2018 at 11:02 am
Nice explanation .Thank you.
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