[torresxdd]

Thank you for your reply. However, When I deduct the dividend ($68,200,800-$600000)/39433750)=1.71428, I still can’t get the right answer. Could you please provide steps to show me how to calculate it?

[torresxdd]

Then how the statement of On 1 July 2015, Entity A also issued a $60,000,000, 60,000,000 10% convertible debts to raise funds. affect the answers. Since they are convertible debts, suppose not affect the Calculation of Basic earnings per share for the year ended at 30 June 2017 and Restate Basic EPS for the year ended at 30 June 2016.

However, the 10% convertible debts are issued in 2015. Suppose cannot affect the Dilute earnings per share for the year ended at 30 June 2017. So I want to know how the above statement affects these 3 answers. Could you give me some tips?

Moreover, could you give me advice on the calculation on the Weighted Average, Convertible preference shares, options, and Convertible debts? Whether they are correct?

Thank you. Please!!!!

[torresxdd]

Please help. Thank you

[torresxdd]

Why this is incorrect “Fair value less cost of disposal = $10,500,000 – $200,000 = $850,000”?

Recoverable Amount = $913,290
Impairment loss= (21,720,000 – 913,290)=$20,806,710

31 Dec 2014
Dr. Depreciation expenses (36,200,000 x20%) $7,240,000
Cr. Accumulated Depreciation $7,240,000

31 Dec 2015?
Dr. Depreciation expenses $7,240,000
Cr. Accumulated Depreciation $7,240,000

31 March 2015
Dr. Accumulated Dep. ($36,200,000-$21,720,000) $14,480,000
Cr. Machineries $14,480,000
Dr. Impairment Loss $20,806,710
Cr. Machineries $20,806,710

(is it only eliminate the Accumulated Depreciation when impairment loss occurred?)

31 March 2016
Dr. Depreciation expenses $7,240,000
Cr. Accumulated Depreciation $7,240,000

Carrying amount of 31 March = Cost ($36,200,000) – Accumulated depreciation ($7,240,000?x 3 = 21,720,000) – Accumulated impairment $20,806,710 = -6,326,710
Is it like this? the Impairment Loss from last year becomes Accumulated impairment?

I feel confused how to make entries after impairment loss, please help

[torresxdd]

Also, I would like to ask whether the entries of revaluation surplus transfer to retained earnings need to make when the residual value or useful life is changed?

[torresxdd]

is it
Annual Depreciation =36,200,000 x20%= $7,240,000

31 Dec 2014, 2015,2016
Dr. Depreciation expenses $7,240,000
Cr. Accumulated Depreciation $7,240,000

For all 3 years?

Could you tell me whether my approach to the impairment loss is correct or not?

Also, the last statement “On 31 Dec 2016, Company B confirmed that further impairment adjustments were not needed after the impairment review of year 2016.” Is this statement implied something? Do I need to make entries?

Thank you

[torresxdd]

Sorry for my carelessness. I have corrected it.

The journal entries:
1 Jan 2001 Dr. PPE 280
Cr. Bank 280

31 Dec 2001 Dr. Depreciation (280/20) 14
Cr. Accumulated Dep. 14

31 Dec 2010 Dr. Accumulated Depreciation (14 x 10 years) 140
Cr. PPE 140
Dr. Revaluation deficit (60-(280-140)) 80
Cr. PPE 80

I think my answer above is right, but I confuse if PPE question with the impairment loss

If the question says 2 years after the recoverable amount is $40

31 Dec 2012 Dr. Depreciation ($60/10 years) 6
Cr. Accumulated Depreciation 6

Dr. Accumulated Depreciation (6 x 2years) 12
Cr. PPE 12
Dr. Revaluation deficit 8 (40-(60-12))
PPE 8

The answer is 2 because I think FV($60) – Accumulated Dep ($12) = $48 carrying amount. Then, the impairment loss(CA>RA) is $48-$40 =$8

I would like to know whether the $8 impairment loss is treated as the revaluation deficit or just write dr. impairment loss?

Also, I would like to know how to deal with reversal impairment loss.

As I know, reversal impairment loss is the CA<RA

if after 2 years the recoverable amount is $50

31 Dec 2014 Dr. Depreciation ($40/8 years) 5
Cr. Accumulated Depreciation 5
Dr. Accumulated Depreciation (5 x 2 years) 10
Cr. PPE 10
Dr. PPE 20
Cr. Reversal of impairment loss (50-30) 20

[torresxdd]

I have seen some notes mentioned that the revaluation surplus is realized when the asset is either disposal of PPE or through consumption of PPE, part of the revaluation reserve is being realized. What is the meaning of part of the revaluation reserve is being realized?

Also, I saw some questions realized the revaluation surplus when the new depreciation more than the old depreciation? Why should we realize the revaluation surplus when this situation happens?

I am talking about the revaluation surplus transfer to retained earnings (the revaluation surplus is realized)

Dr. revaluation reserve
Cr. Retained earnings

Please help. Thank you

[torresxdd]

I just found that I write the date incorrectly, but I cannot find which figure I calculated wrong.

The journal entries:
1 Jan 2001 Dr. PPE 280
Cr. Bank 280

31 Dec 2001 Dr. Depreciation (280/20) 14
Cr. Accumulated Dep. 14

31 Dec 2010 Dr. Accumulated Depreciation (14 x 10 years) 140
Cr. PPE 140
Dr. Revaluation deficit (60-(280-140)) 80
Cr. PPE 80

I think my answer above is right, but I confuse if PPE question with impairment loss

If the question says 2 years after the recoverable amount is $40

31 Dec 2012 Dr. Depreciation ($60/10 years) 6
Cr. Accumulated Depreciation 6

Dr. Accumulated Depreciation (6 x 2years) 18
Cr. PPE 18
Dr. Revaluation deficit 2 (40-(60-18))
PPE 2

The answer is 2 because I think FV($60) – Accumulated Dep ($18) = $42 carrying amount. Then, the impairment loss(CA>RA) is $42-$40 =$2

I would like to know whether the $2 impairment loss is treated as the revaluation deficit, just like my working?

Also, I would like to know how to deal with reversal impairment loss.

As I know, reversal impairment loss is the CA<RA

if after 2 years the recoverable amount is $50

31 Dec 2014 Dr. Depreciation ($40/8 years) 5
Cr. Accumulated Depreciation 5
Dr. Accumulated Depreciation (5 x 2 years) 10
Cr. PPE 10
Dr. PPE 20
Cr. Reversal of impairment loss (50-30) 20

[torresxdd]

Sorry, I edit my question. I type a wrong question. Could you help me, please? thank you.

[torresxdd]

it is a question on my assignment

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