ACCA P2 IAS 16 – Depreciation

Comments

1. amandamcfadden says

   February 1, 2018 at 6:43 am

   Hi,

   I am also wondering about the above query from Zoran. If we are given the accounts to consolidate would they not have already included depreciation at the previous rate of 2.5 so we would only need to adjust by 1m?

   Can anyone assist on this?

   Thanks so much.

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2. zoransucic says

   May 12, 2017 at 10:47 am

   Hi,

   Quick question with regards to the Group Account adjustments. Why do we have to adjust retained earnings by 3.5m (as per example) as we originally would carry a depreciation of 2.5m p.a`? In my opinion the difference between 3.5m and 2.5m should be adjusted in the Group Retained Earinings (unless it is stated that the specific asset in PPE is not considered in the accounts of either the parent nor subsidiary)? Thanks for clarifying

   Kind regards

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