Forum Replies Created
- Posts
For the purpose of thoroughly understand the syllabus I asked the question. I guess I must move it to F2 asking tutor forum.
Thank you for your time.
So the entry should be
DR Revaluation surplus (SoFP) 1000
CR Retained earning (SoFP) 1000Why do you use the line CR Sofcomp Inc?
Thanks
@mikelittle said:
Jemma, I don’t have it in front of me but it sounds like an asset has been revalued by $5,000 and that asset has a five year estimated remaining useful lifeAm I right so far?
After revaluation, the company will be charging depreciation on the new carrying value of the asset. But why should retained earnings suffer that extra hit of the depreciation on the revaluation increase?
That’s right – it shouldn’t!
So (although it’s not mandatory, it’s seen as good practice) each year an amount equal to that extra depreciation on the revaluation amount could be (and here, it is) transferred to the retained earnings ….. Dr Revaluation Reserve, Credit Retained Earnings with that amount also being included within Statement of Comprehensive Income
OK?
I dont understand where $1000 comes from, the question doesnot mention anything abt that $1000 and I DO NOT understand ur explanation, can you make it more clear?
Sometimes, I feel hopeless with the way English is used in BPP textbook.
Thanks you for explainations.
Can you explain the definition of Surplus in BPP textbook Mr John Moffat. I see that it’s very unclear.
“Surplus: occurs when more than a minimum requirement is used: surplus is the excess over the minimum amount of constraints, WERE the constraint is a “more than or equal to” constraint.”
I re-installed my window 7, and the problem is still there. Gotta bye this site. So sorry.
I stop the Adblock in Chrome, clear the cache/ reload the page. But still dont see the vid.
Here is Screenshoot from Firefox
I try Firefox and the problem is not solved, my flash player is 12 version.
Here is my print Screen:
Im from Viet Nam. And my PC links directly to the Net, not via any local networks or working group networks.
I hv never got this issues before. All my system is the same for along time and works properly.
I still watch Youtube as usual, some of your vid based on Youtube I still can watch them.
Help me out pls!
I only can watch the YouTube vids, another vids r disappear. I think Youtube is played by Flashplayer, is that right?
I have never got that problem before.
I hv got this in otherway:
Efficiency ratio = expected time(=0.5 hrs)/actual time = 90/100 => actual time = 0.5 hrs x 100/90.
The same applies for the wire.Thanks in adv John Moffat!
I feel a bit tricky while I calculate allowance for waste and idle time of this question. Why multiply by the factor 100/90 is more correctly. I calculate by adding more time/material to come to actual figure this way seem incorrect as examiner’s report. Please explain for me?
Actually, for above question I misunderstood the question from ACCA real question 6.2012 with the amended question which is in the exam kit. They r all the same at the beginning but a bit different at some bottom lines.
Again, thank you very much John. Nice weekend!
@ John Moffat
Traditional overhead allocation as it says in the question @ F5 BPP exam kit 2012:
Overhead
CB: $2.4 per unit
TJ: $4.0 per unitthat means if changing to ABC allocation method for CB 0.05 higher = 2.4 + 0.05 must be = 2.45; for TJ lower 0.3 must be =4.0-0.3= 3.7. But the question says CB@ 2.35, TJ@ 3.65.
There are something wrongs in here!PS: If u have the examkit, pls open and check it for me. Additionally, in the answer they provide wrong value for TJ =3.95 instead of 3.65.
I dont know why people like BPP text book; to me it’s alway too lengthen and complicated in organizing. Truly worst text! Many tuition prepares lecture note by copying Kaplan textbook format.
Thank u Mike for the reply and Im so sorry for my misleading question that makes u confuse. Here is the note:
Note (C) in question Winger @ BPP F7 textbook pages 377
On April 20×0 Winger acquired a new property at a cost of $200 Mil. For the purpose of calculating depreciation only, the asset has been separated into the following elements.
Separate asset
Cost Life
Land 50,000 freehhold
Heating sys 20,000 10 yrs
Lifts 30,000 15 yrs
Building 100,000 50 yrsThe depreciation of the elements of the property should be calculated on a straight-line basis. The new property replaced an existing one that was sold on the same date for $95 mil. It has cost $50 mil and had a carrying value of $80 mil at the date of sale. The profit on this property has calculated on the original cost. It had not been depreciated on the basis that depreciation charge would not be material.
Plant and machinery is depreciated at 20% on the reducing balance basis.
My problems are :
1. I don’t understand how to deal with note C in order to prepare Income statement and Balance sheet. Profit on disposal non-current asset is : 95mil – 50mil = 45 mil and this is figure that they provide on the trial balance.As I see in the answer, for the figure of Income statement: Profit on disposal of land and buildings (95 mil – 80 mil = 15mil)- OK I get this; Profit on disposal in Retain Earnings for Balance Sheet:(45 mil – 15 mil = 30 mil) – I don’t understand this: why they put the profit to Retain Earnings?
I really dont know how to solve this note for purpose of preparing Balance sheet and Income statement.
Thank u for explain and pls be patient with me!
For the profit on property sale(note c) in the Winger question, anyone can explain for me what it is? I dont understand the answer why do they make the total profit 45,000 into 30,000 to retain earning(Balance sheet) and 15,000 to profit on the sale (in the Financial Statement position)?
At final sentence they say:” It’s had not been depreciated on the basis that depreciation charge would not be material”. I dont understand the implication of this information. Anything relates to depreciation of this asset need to be adjusted???
Pls help!