ACCA P2 Joint Arrangements (IFRS 11)

Comments

1. olanrewaju says

   December 3, 2016 at 10:05 am

   I also think the total receivables should be $2,600. Depreciation is a non-cash item

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2. Jefrishan says

   September 27, 2016 at 4:28 pm

   Dear sir,
   I just have a doubt. How does the double entry for depreciation go as in this example?
   Should it be Cr. Payable or Cr. P&L.
   If it is Cr. P&L then the total receivable in the SFP would be 2,600 and not 2,000 right?

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   • abby says

     October 3, 2016 at 6:38 am

     Revenue 12,000
     Less
     DCost. 8,800
     O cost. 600
     Dep. 600

     Profit. 2000
     So receivable is 2000 too…depreciation is an expense so it reduces profit

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     • nabeelzafar94 says

       October 31, 2016 at 7:02 am

       same Question. Depreciation is a non cash expense. how come it reduces the overall receivables? Regards

     • jbouwer says

       November 1, 2016 at 5:29 am

       As I understand it, we show the net amount ‘Receivable’ form the Joint Operation (JO) in our SFP, hence we included the ALL cost/ profit relating to the JO as a as a Net Receivable.