[peronapilar]

Chris i have passed f1!!!!… thanks for all your help and support!!!!

Muchísimas gracias desde España!!!!

Pilar

[peronapilar]

Hi Chris

My last review before the exam….

Sorry for being a nightmare, but just to confirm

The solution is

Dr Revaluation reserve 200,000
Cr Asset 200,000

Am I correct?

I promise I will let you know if I have passed the exam….

Thanks… muchas gracias!!!!!

Pilar

[peronapilar]

Thanks to you. Muchas gracias!!!

[peronapilar]

thanks, as usual…. you’re the best!

[peronapilar]

yes, thanks… I have done the same but in 2 different steps… essentially, when you revalue the asset, you have to write down the Acc depreciation and you recognise the impairment in the value of the asset (crediting the asset account), the difference is the P&L balancing figure, and then, when you reclasiffy as NCAHFS, the loss is because you have the costs to sell

The main question is … if you reclassified the asset, you cannot leave the Acc depreciation in SFP, as this asset has been transferred to Non-Current Asset held for sale… am I correct?

Thanks a lot for your kind help from Spain… sometimes is difficult to understand the concepts when english is your second lenguage (and sorry if sometimes I explain everything in a “difficult way”!!!!) 🙂

[peronapilar]

I would say (to decrease the value of the asset in the revaluation)

50,000 Acc Deprec (DR)
5,000 P&L(DR)
Asset (CR) 55,000

With this we would have asset revalued (under revalued) and then

185,000 NCAHFS (DR)
10,000 P&L (DR)
Asset(CR) 195,000

Can you please tell me if this is correct?

Thanks

Pilar

[peronapilar]

Thanks… you’re fantastic… this is what I thought…. but my book said clearly

DR ASSET (SFP)
CR REVALUATION SURPLUS (SFP)

and that’s why I was so confused

Pilar

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