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Company has a policy of revaluation.
IFRS 5 requires that, if the policy is revaluation, you must:
1. Revalue to FV at date of classification as HFS.
2. Compare FV with FV less costs to sell – resultant loss to P&LImpact is that selling costs will go to P&L.
Very irritating rule but we are stuck with it.
🙂
100% no.
Don’t use any P2 materials at all. Why?
1. Exam is now about explanations rather than calculations.
2. Accounting standards have changed.
3. Style of consolidation question has changed.Only use BPP or similar revision kit valid for current sitting.
🙂
Financial assets – Dr FA Cr Cash
Financial liability – Dr FL Cr CashException if FA or FL is measured at fair value with gains/losses in P&L, then:
Dr P&L Cr CashAll I can say is ….. if you plan to do AAA ….. do it next…… but be aware it’s harder than SBR so will need a lot of time.
🙂
If you mean – comment on the weaknesses of standards – not the most important thing in the world. Nothing outside the study materials. Exam is more practical than theoretical.
ALL ANSWERS ARE EXAM PURPOSES ONLY (AS ALWAYS) 🙂
Two distinct stages:
Stage 1
Build asset
End of Stage 1 – asset complete – there will be no further adjustments to CA of asset / capitalisation of interest
Stage 2
Start to depreciate
Have a go at the spreadsheet exercises at https://opentuition.com/acca/sbr/
Otherwise all I can think of is recent past question practice from ACCA platform
If your double entry feels rusty perhaps look back at some our FA materials.
Best I can do
🙂
IFRS 5
NCA held for sale – maesure at lower of CA and FV less disposal costs; classify as current asset
No reference in the scenario to ownership passing at the end of the lease.
So, shorter of life and lease term
Something that I would only think about if payment was in arrears.
I see your point, but, in the exam, above all, keep it simple. 🙂 That’s what accountants should be doing. My vote is with your mystery tutor.
If you buy land: Dr IP / PPE Cr Cash (IP if held for investment potential)
No development = no double entry
No depreciation
Possible impairment if land values fall significantly : DR P&L CR PPE
1. Yes
2. YesCapitalisation would cease if there was an interruption.
No further knowledge really needed for exam purposes.
As previously stated, the extra 20 is not recognised.
No imbalance – no debit and no credit.
🙂
Please watch my debriefs of exams and of the spreadsheets for assistance.
https://opentuition.com/acca/sbr/acca-strategic-business-reporting-sbr-revision-kit-live/
1. Reverse initial loss of 20 but do not recognise the extra 20. Carry at lower of CA (at time of classification as HFS) and FVCTS.
2. Value in use not relevant if HFS, as we are selling not using.🙂
Hi. Pleased that you are enjoying the lectures.
At the moment we don’t have the resources to debrief any further exams.
Don’t forget to make use of the ACCA hub.
🙂
I would get straight on with the SBR. Just make sure that you spend more time on accounting standards than on consolidations.
🙂
