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IAS 16 – Revaluation decrease – ACCA (SBR) lectures

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  1. Why did we not create another line item to depreciate the 8 million revaluation value? I am still concerned about how we used the prior (revaluation gain) depreciation value – 1.75 as the depreciation value for the year as shown in P&L.

  2. Hi.

    Why did we not depreciate the asset before the revaluation? We revalued on 31st Dec and calculated the gain/impairment on the b/f amount as at 1st Jan. Wouldnt we have accumulated another yr depreciation by this point?

  3. Sir my question is, how to treat if after revaluation of PPE, current year depreciation charge is less than the depreciation figure we charge without revaluation? Should we have to transfer that amount to retained earnings.

  6. I have a question. When in the end in the SOCE we take out the 3.85 figure from the OCE, if we look at the entry we are actually Dr(debiting) the Revaluation Surplus with the amount 3.85, but what are we Crediting??

  8. Hi Sir, I have some doubt regarding the depreciation of 0.55 million. Why is it a transfer from other components of equity to retained earnings in the statement of changes in equity?

  9. Hi Sir,

    In this question during the year 2014 there was revaluation surplus of 3850. So in the 2nd year if there is a loss(in this case 4250) u set it off against any surplus first and the remaining goes to P/L right?
    My question is
    1) Why are we taking it as an impairment and not a revaluation loss or do they both mean the same( i dnt think they do)?
    2) Why are debiting 3850 as a “revaluation loss” in OCI?

    • Hi,

      1) They are the same thing, so don’t worry about the terminology

      2) The gain was previously taken to OCI and therefore the loss should be taken to the same place within the financial statements.

      Thanks

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