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December 7, 2022 at 6:45 pm
On 1st January 20X9 William disposed of the OVEN
April 26, 2020 at 10:38 pm
IFRS 19 – Accounting for Coronavirus Pandemic
Objectives The objective of IFRS 19 is to prescribe accounting treatment for Covid-19. The principal issues are the timing and manner in which the virus can be contracted.
The standard also provides guidance on methods to be adopted to stay safe.
Scope The standard applies to accounting treatment for Covid-19 except Ebola, Typhoid Fever, Diabetes, Pneumonia, Cancer, Malaria, etcetera.
Technical Definition Coronavirus also known as Covid-19 is a present disease contracted as a result of past events from which the victim is expected to die or recover.
Recognition Criteria For coronavirus to be recognized, three conditions must be met: ? There is a present disease known as Covid-19, contracted as a result of past events. ? It is probable that self isolation, quarantine or evacuation to isolation center will be required to treat the patient based on symptoms such as high fever, cough, sneezing, difficulty in breathing, etcetera or upon testing positive to the virus. ? The cost of treatment can be reliably measured.
Measurement Criteria Coronavirus are measured at the best estimates of the expenditure required to treat the disease.
The best estimate will be: ? The most likely amount required to treat a single patient. ? An expected value for a large population of patients.
Both measurements are not discounted to present value because of complications that may arise.
In reaching the best estimates, considerations should be given to risks and uncertainties.
Derecognition Coronavirus patient shall be discharged or derecognized: ? Upon death or recovery. Whichever is earlier. ? When no future outflow of economic resources will be required to treat the patient. ? When it was discovered that the patient was actually suffering from Malaria or Typhoid Fever.
Disclosures ? The number of confirmed cases. This should be classified into age, gender, race, travel history, etcetera. ? The number of recoveries. ? The number of deaths recorded. ? The total amount of Covid-19 related donations. ? The total amount spent.
Staying Safe ? Use of face masks at public place. ? Regular washing of hands with soap. ? Use of alcohol based hand sanitizers. ? Observe social distancing. ? Avoid crowded places. ? Think everyone is a suspected carrier of the virus.
Composed by: Ayomi Ladokun First Choice Academy, Nigeria
April 19, 2020 at 10:11 am
Historical cost depreciation comes $32000 revaluation depreciation comes to $43478
meaning we would have Accumulated depreciation of $75478 As at 31/12/20×8
My question is why deduct revaluation depreciation from historical depreciation to equal $64000 like revaluation never occurred and netting the difference from revaluation balance ?
April 26, 2020 at 6:15 pm
I think that after the first revaluation at 500k you should Dr the 32k of accumulated depreciation so, when you sell the asset you should only have 43478 in the Acc. dep balance.
So my guess will be something like
Dr Cost 50000 Dr Acc Dep. 43478 Cr Other Comp Income 93478
June 12, 2019 at 7:54 pm
Hi, The gain on disposal should be calculated based on the revalued figure less depreciation or Historic cost less depreciation? thanks
June 12, 2019 at 9:15 pm
The gain on disposal is calculated by comparing the proceeds to the carrying value of the asset. The carrying value will be that of the revalued asset.
May 16, 2017 at 5:43 am
is the correct journal entry the following please: Dr. Revaluation surplus 120,520 Cr. Retained earning 120,520 please confirm
December 31, 2018 at 10:59 am
Yes, this is correct.
September 6, 2016 at 9:43 pm
In an exam it would specifically say what to do. If it didn’t then I’d assume they do have the policy as it is beneficial to the shareholders to do so given it increases their distributable reserves.
August 30, 2016 at 9:09 pm
My understanding is that the entity has a choice whether to transfer the depreciation difference from RS to RE or not.
However in your example it seemed you just did it anyway without explicitly stating that this is the entity’s policy. What shall I do in an exam situation?
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