Thanks for the lecture Chirs.
But why can’t we transfer excess depreciation through P&l?
Secondly I have come across with accountants who divide the revaluation surplus into remaining depreciation life and transfer it to P&L .
Dr RR and Credig P&l. Is this a correct treatment?

Q:But why can’t we transfer excess depreciation through P&l? – A:there is 5.558 which includes excess of 1.558 and it’s in SPLOCI

Q:Secondly I have come across with accountants who divide the revaluation surplus into remaining depreciation life and transfer it to P&L .
Dr RR and Credig P&l. Is this a correct treatment? – not sure what do you mean here, can you show an example

no, because you have 1st depreciation before revaluation for period 1/1/12-1/1/15 which is 3 yrs, and after revaluation period is for 1/1/12-31/12/15. How can you calculate entire dep’n for 4 years with two different values? you need to split first for two periods with different values

I don’t think so, because 27mil is for ye 2014 and 25412 is for ye 2015. Unless if you are 4 years behind with your accounts and looking to post a journal this way as a quick fix haha

praveenmasih says

Thanks for the lecture Chirs.

But why can’t we transfer excess depreciation through P&l?

Secondly I have come across with accountants who divide the revaluation surplus into remaining depreciation life and transfer it to P&L .

Dr RR and Credig P&l. Is this a correct treatment?

Thanks.

Califa says

Q:But why can’t we transfer excess depreciation through P&l? – A:there is 5.558 which includes excess of 1.558 and it’s in SPLOCI

Q:Secondly I have come across with accountants who divide the revaluation surplus into remaining depreciation life and transfer it to P&L .

Dr RR and Credig P&l. Is this a correct treatment? – not sure what do you mean here, can you show an example

marionnassamula says

isnt the 1st depreciation for 4 years 01-01-2012…….31-12-2015

Califa says

no, because you have 1st depreciation before revaluation for period 1/1/12-1/1/15 which is 3 yrs, and after revaluation period is for 1/1/12-31/12/15. How can you calculate entire dep’n for 4 years with two different values? you need to split first for two periods with different values

gulabsagar says

For revaluation journal entry can we do :

1. Dr PPE 15000

Dr ACC DEP 12000

Cr OCI 27000

Then

2. Dr OCI 27000

Cr Revaluation Reserve 25412

Cr Retainted Earnings 1588

Califa says

I don’t think so, because 27mil is for ye 2014 and 25412 is for ye 2015. Unless if you are 4 years behind with your accounts and looking to post a journal this way as a quick fix haha