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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Better late than never!-PPE stuff
sir i know you may deem it as an elementary level question but i would still not shy away from asking it. better late by few months, than forever!
Sir we say that PPE is not held for trading so any gains on its revaluations should not be taken to SPL, but credited to OCI. However we can’t take its impairments to OCI directly, unless it was revealed in the past. Which sounds strange to me. If we know reserves can have negative balance, then why not take IMPAIRMENTS to OCI directly, REGARDLESS of whether a revaluation surplus does exist on that PPE.
meant revalued: “However we can’t take its impairments to OCI directly, unless it was REVALUED in the past.”
PPE revaluation reserve cannot be negative
Some other reserves can be negative – eg FVOCI investments, CF hedge, FX