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PPE – revaluation upwards – ACCA Financial Reporting (FR)

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  2. 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.

    • 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

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