Foreign currency – Example 2 – ACCA (SBR) lectures
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should the accumulated depreciation of £4m be debited?
Dr PPE 2.1
Dr accumulated dep 4.0
Cr OCI: reval reserve 6.1
You are amazing teacher. I would like to see full set of your SBR lectures. Where I can get them? Please help
why are we not considering the step 2 approach to find monetary and Non -Monetary transaction as explained in previous lecture?PPE is non monetary but what about the other side cash/payable?
Because the question specifically asks you to talk about the transaction within the questions which is PPE and nothing else.
Hi, surely the depreciation for SPL is 1mill for the year rather than 5mill?
Or am I missing something?
it is 1 mil per year for 20 years. but we deducted 5 mil in this calculation to ge the current value of the PPE after 5 yrs of depreciation since 2011. current value = cost – dep. over the years.
I surely think the depreciation for the year to the SPL is $1 while $5 is the accumulated depreciation if am correct
Only $1 million would be Dr to SPL for 2015.
The accumulated depreciation is $5 million.
Why the answer in the note of depreciation is 4?
=(20/25years) X 5 years
FYI.
I feel this is a mistake in the notes. Just follow the ’20 years’ as in the video, not ’25 years’.
20/25*5yrs = 4 which means depreciation for the 5 yrs = 4m
depreciation per year = 4/5yrs = 0.8m
which mean cv after 5 yrs = 20-4 = 16
the way he calculated it is a direct way to get the cv instead of breaking down the depreciation each year.
Also, would there every be a time where the revalued amount would be given in the functional currency. e.g. instead of saying it was revalued to 95M Dinars it could say that it was revalued to 22 dollars and we’d somehow have to work backwards to get to the correct dollar figure?
Based on the definition given to identify the functional currency and based only on the information given, why isn’t the functional currency Dinar?
I thought you could not identify the functional currency based only on where the company is located? but rather by the currency they charge and the currency they’re billed (paraphrased).
Have I missed something?