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?
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?