19.2 revision kit

Who said it will not be included??? The value on the SOFP is calculated as the original cost less the accumulated depreciation. As I explain in my lectures, this breakdown is either shown on the SOFP or is shown as a notes to the accounts.

Hi John. I think he means question 19.2 where the answer says that accumulated depreciation is not included on the SOFP.

yes, sir I know value is calculated less the accumulated depreciation. I am asking in 19.2 where we have to tick the option of included in SOFP or not included in SOFP

If you are referring to task 1, then the accumulated depreciation listed on the TB is (as usual) the depreciation at the start of the year. This does not appear on the SOFP. The accumulated depreciation on the SOFP is the balance at the end of the year after the year end adjustments have been made. I do explain this in my lectures :-)

so sir this means only year-end accumulated depreciation is included in the SOFP after the year-end adjustments have been made. then where does opening accumulated depreciation occurs in financial statements?

The opening accumulated depreciation does not appear in the financial statements at the end of the year. It is in the trial balance because until the depreciation for this year is entered, the opening balance will still be on the account.

okay now got it, thank you for helping out. you can now close this post

You are welcome :-)