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its on the 50th page of the open tuition course notes. . link to notes is there on the right side of the screen.
hav u tried reading the explanation for it in the open tuition course notes?? i think that mite help
hey ,
even i had the same doubt over that adjustment.I had actually left that. But when i looked up again yesterday i “think” I hav found out what they hav done…
If you look at that loss of $1.6m, they’ve reduced it from the income statement and added back the same in the OCI. so the net effect is actually NIL. If u had observed the related adjustment in the question, they hav mentioned that the revaluation loss and the depreciation has already been accounted for in the comprehensive income. .
so I think they wanted to test our knowledge on the computation of the revaluation loss. . if u hav noticed they haven’t charged the related depreciation in the income statement.hey ,
i think this might be the solution for your problem.[quoted from the kaplan text]
For AFS Financial assets gains and losses [$0.6m] is initially disclosed as OCI and recognised in equity and when it is sold or impaired or derecognised the cumulative gain or losses previously recognised is reclassified to profit or loss…
so the loss of $0.6m previously deducted from OCI is added back to the same and reduced in income statement together with the current year impairment. .