PPE – revaluation downwards – 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
ACCA September 2024 exams
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for September & December 2024 exams.
Get your discount code >>
why isn’t the value in the accumulated depreciation account eliminated when revaluing down the PPE to $8m?
IS THERE ANY DIFFERENCE BETWEEN REVALUATION LOSS AND IMPAIRMENT?
Hello Sir,
What about accumulated depreciation do we have to Dr Acc Depreciation and Cr PPE (Then only it will come to 8000) and;
Thank you for your lectures
Hi Chris,
Why are we debiting £3850 in OCI but not in Revaluation reserve??
Please I don’t understand where the excess depreciation is from at 10:22
Hello Chris,
Please why do we have to use up $3,850 in the reserve?
I think that´s because the revaluation reserve was 4,400; the excess depreciation was 550; thus the balance was 4,400-550=3,850 that needs to be used up / removed because of the revaluation decrease / impairment. Thus, we debit by 3,850 the revaluation reserve but the value of the impairment was 4250. Then 4250-3850=400 impairment that goes to PL.
Hi Chris,
Would you kindly clarify why you’re saying that all of $3,850 in the revaluation reserve is going to be used?
And where are the entries for accumulated depreciation & depreciation?