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Hi Sir,
Thanks. There’re still some questions from OP MCQ practice mentioned earlier.Chp5. IAS 40 Investment Property.
Q: What’s the difference between NCA held for sale and Investment Property?
(Since Investment property include propety for capital appreciation, which means selling in future, I feel that quite similar with NCA held for sale as it’s also selling in future within one yr, which’s also in future?)Chp 7 Imparirment (IAS38)
Q: Is Net Residual Value same with Net Relisable Value? What’s the difference?
OP MCQ Q2: How to calculate it? (Why the answer says Carrying value of Track is 90,000? Why Carrying value of NCA is 150,000? I cannot find any clues from the question)Chp9 Accounting Policies/Change in Accounting Estimate (IAS8)
OP MCQ Q3: Why “changing the value of yr end inventory from marginal costing to absorption costing” is “change in accounting policy”?
(I think the marginal costing and absorption costing is about Management Accounting, noting regarding with Financial Reporting?)Hi Sir,
Thanks for the repy.
Btw, I still confused about “If the fall in value is $1.24m and there is not transfer between the reserves then the balance on the revaluation reserve will be left at $900,000, it is not adjusted at all for any excess depreciation transfer…. “.I think even if there’s no Reserve transfer of Excess Depreciation, the Balance on Revaluation Reserve should be also $880,000( $900,000-10,000*2. Take OP notes Chp 5 NCA example1 as a example, if we look at the Working for the Revaluation Reserve column, The excess of Depreciation (1,588) is excisted there and Value of the Revaluation reserve was 27,000, then deduct excess of Depreciation (1,588) and the final Revaluation reserve become 25,412.
In this case it’s not even discussed whether the Rereserve transfer of Excess Depreciation is made. That’s why I think the Balance on Revaluation Reserve here should be also $880,000( $900,000-10,000*2), not 900,000. Can you please expain why it’s wrong?Also, since company prefer to transfer excess Depreciation from Revaluation Reserve to Retained Earnings to increase the Dividiens to pay, but the solution shows that when there’s no transfer of excess depreciation made, only $340,000 charged to P/L, and when there’s a transfer of excess depreciation made there’s $360,000 charged to P/L. So that means although the excess depreciation of $20,000 was moved to RE, but the PL is charged $20,000 more (360,000-340,000). And then RE includes inclues the Profit for yr. How could the reserve transfer of excess depreciation increase RE and result in more Dividend to pay to SH?
Hi Sir,
Is it possible to upload the videos in short this weekend? Appreciate you’re busy, but would it be great to at least have the rest of videos for Chapter 21, 23 and 24 uploaded? (especially for the Consolidated SFP and PL)Thank you very much for your help.
Hi Sir,
Thanks for the reply. I understand in working 1 – Right of Asset. The incentive has been deducted (22730+1000-500). That’s no problem at all. However what I’m confused is working 2- Lease Liability. the B/F figure is 22730, which doesn’t less the incentive 500.On the table of p.48 for Lessee Accounting Initial recognition, the Lease liability part states “Fixed payments less incentives”. So I think the Lease Liability B/F figure should be “22730 Fixed payments -500 Incentive” instead of “22730”?
Hi Sir,
Thanks for the reply. Really appreciated.As for Q 46. I know it’s not the case here. So that’s why I think it (option C) should be one of the answers because the question is asking “what is “”not”” an indicator of impairment”.
The answer is only option D. So is option C also the answer? Could you please confirm?
Thanks.
