subsequent to second revaluation, Dec 31, 20x7, the closing balance of Accumulated Depreciation should have been $150,000 (75+75), therefore, NBV of PPE was $975k.
That been said, and with reference to your explantion of closing balances of accounts affected after second revaluation, where which the PPE shall be reported at $ 600,000 as a net book value, what would the gross Net Book value and Accumulated Depreciation?
Many thanks,
Mirza
M
Mirza·
cont....
is it $ 750k, unless the Accumulated Depreciation is reduced to zero? If so, is it zeroize and against what?
Thanks again
Mirza
M
Marco·
Hello.
At 31/2007 do we also debit revaluation surplus for 25 and credit retained earning for 25? If so, why oic is not 350?
Thanks in advance
M
Moses·
Hi
what is the use of General Reserve account?
When an asset has been impaired can we charge the impaired loss to general reserve before taking the balance to profit or loss statement?
S
sarrah006·
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?
I
Irfan·
325 was already in OCI from previous revaluation and subsequent transfer of excess depreciation, at the start of year 20x7, so to net it off at the end of year we first set of 325 of Impairment to OCI and remaining to SPL
S
sarrah006·
okay thanks
i didnt know oci carrys balance as well because i thought even oci is yearly basis
I
Ilkin Musayev·
I like the slogan stick to that and you wont go too far wrong )
H
Harsh·
Sir , should we not first transfer 375 from ppe to impairment and then from impairment to sopl and oci
K
karang·
Hi
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
Y
yasar89·
Hi Cris,
What is the difference between impairment and revaluation downwards?
Please explain.
Thank you.
T
Tugcem Kocadal·
Hi,
Why we didn't put on SFP revaluation surplus?
A
Alexandra·
Hello
Just to be sure ... so here the « revaluation surplus » will be 0 right ?
Thanks
A
Anoosha·
From where that 50 came in depreciation?
I
Irfan·
it is the depreciation amount that would have been charged had the asset had not been revalued.
depreciation= 1000/20
50 per annum
A
aarti·
Sir, could you please upload a video on 'Reversal of Impairment' as well?
A
ali5185·
Do we have to transfer excess depreciation to retained earnings every year?
P
P2-D2Tutor·
We aren't obliged to do so but it is best practice.
H
Hrithik·
The depreciation charge for the year that was recorded in the Statement of Profit or Loss for the year ended 31st Dec 20x7 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.
S
shafiuahmad·
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.
Thank you
M
MikeLittleTutor·
It's an optional transfer but generally considered to be 'best practice'
subsequent to second revaluation, Dec 31, 20x7, the closing balance of Accumulated Depreciation should have been $150,000 (75+75), therefore, NBV of PPE was $975k.
That been said, and with reference to your explantion of closing balances of accounts affected after second revaluation, where which the PPE shall be reported at $ 600,000 as a net book value, what would the gross Net Book value and Accumulated Depreciation?
Many thanks,
Mirza
is it $ 750k, unless the Accumulated Depreciation is reduced to zero? If so, is it zeroize and against what?
Thanks again
Mirza
At 31/2007 do we also debit revaluation surplus for 25 and credit retained earning for 25? If so, why oic is not 350?
Thanks in advance
what is the use of General Reserve account?
When an asset has been impaired can we charge the impaired loss to general reserve before taking the balance to profit or loss statement?
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?
i didnt know oci carrys balance as well because i thought even oci is yearly basis
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
What is the difference between impairment and revaluation downwards?
Please explain.
Thank you.
Why we didn't put on SFP revaluation surplus?
Just to be sure ... so here the « revaluation surplus » will be 0 right ?
Thanks
depreciation= 1000/20
50 per annum
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.
Thank you
OK?