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December 22, 2020 at 10:18 am
Quick question. IAS 16 for recognition has 2 criteria (probability of economic benefits flowing to the entity and that the cost can be reliably measured).
In the revised framework though these 2 criteria were replaced by the criteria of relevance of the info provided and that the recognistion of the asset provides faithfull represented info.
If there is a question regarding recognition of a PPE, should we follow the IAS 16 or the revised framework?
July 23, 2020 at 8:37 pm
Is a credit to OCI,an automatic credit to OCE?
July 4, 2020 at 11:51 pm
How would the answer be different for example 1 Panama if the asset was revalued at 31st December 2015 instead OF 31st January 2015?
Would we calculate depreciation for 2015 at £4m?
Referring to Page 44 SBR lecture notes example 1 revaluation increase
April 22, 2020 at 5:21 am
In the SOFP, Equity Section should be included “retained earning” with 1.6, right?
August 20, 2022 at 4:27 pm
I think the tutor mentioned we use SOCE
June 11, 2019 at 8:36 am
I did not understand anything from 13.11 till the end of the video
what did you do with excess depreciation
and what is the logic behind transferring the excess to SOCIE ?
April 20, 2019 at 11:34 am
Hai can you send me the little bit explinatory notes on PPE if possible
January 18, 2019 at 6:09 am
Cap bought a building on 1 January 20X1. The purchase price was $2.9m, associated legal fees were $0.1m and general administrative costs allocated to the purchase were $0.2m. Cap also paid sales tax of $0.5m, which was recovered from the tax authorities. The building was attributed a useful economic life of 50 years. It was revalued to $4.6m on 31 December 20X4 and was sold for $5m on 31 December 20X5.
in this question there has been a transfer of 1.84m from OCE TO RETAINED EARNINGS.
should it not be 1.8 m?
please help me
August 20, 2022 at 7:39 pm
In relation to this question, how is profit on sales of PPE item treated? Is it just recognized as a profit in P&L.
Also, since the revaluation surplus has been realized, will it be transferred permanently to P&L as well?
December 16, 2018 at 10:46 am
I have a doubt regarding PPE.
in definition it is written that PPE is used for rental to others.
my question is how to know whether it is a lease or PPE?
December 17, 2018 at 5:03 pm
If we recognise the asset as a right of use asset under a lease as the lessee then it will be classified as PPE. If we are the lessor and rent it out under an operating lease then we still have the risks and rewards of ownership and so continue to recognise the PPE in our books. The question will make the scenario clear in any exam question.
December 21, 2018 at 2:39 pm
I have a doubt. Should it not be an investment property for the lessor if he rents out an asset under an operating lease.
January 4, 2019 at 8:48 am
The asset is transferred from PPE to IP. Thanks
November 13, 2018 at 1:48 pm
Hello Mr Barlow, I have a question regarding the revaluation increase problem that you solved towards the end of this video.
When we transferred 1.6 million at the end of year 2015 (difference in depreciation: between 4 and 5.6) to revaluation reserve from Other Comprehensive Income, can it also be inferred as appropriating OCI and transferring the same to revaluation reserve over remaining useful life of asset?
Thanks in advance
December 17, 2018 at 5:01 pm
It is just a transfer of reserves from the revaluation reserve to retained earnings. I can’t say that I’ve heard the terms that you mention above, sorry.
November 7, 2018 at 6:05 am
sir whats the logic behind adding the 1.6 to the RE after deducting it from the 27 in SOCE?
December 17, 2018 at 4:59 pm
The revaluation reserve is not a distributable reserve and by making the transfer to retained earnings we are increasing retained earnings which is a distributale reserve.
October 30, 2018 at 1:10 pm
Hello Sir, can you please give a example of this statement- “The accumulated depreciation at the date of the revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses.”
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