BPP-Comprehensive income

The increase from $20,900,000 ($22,000,000 less half a year depreciation of $1,100,000) to $23,000,000 ie an increase of $2,100,000 should be credited to revaluation reserve Ok?

say the profit in post-acquisition is $1.6m, then the total comprehensive income should be $1.6m-($22m-$20m)/20yrs+$2.1m-$1.1m am I right? and your working:$20,900,000 ($22,000,000 less half a year depreciation of $1,100,000) why the depreciation of $1,100,000 occurred? Is it because we are going to sell the building at the end of this year? (remaining life of 19yrs is not considered.)

No, and For half a year the revalued asset was $22,000,000 and depreciation over 20 years for half a year is $1,100,000 And 19 years doesn't come into this. At the end of the year there's still 19.5 years of estimated useful life, not 19

><shouldn't depreciation be half of $1100000? (btw, did I calculate comprehensive income correctly?)

You're correct - it should be half of $1,100,000! Thank heavens I wrote it down correctly in the workings - that would mean that I wouldn't lose a mark in the exam from a stupid calculation error! Without the question in front of me ...... your comprehensive income calculation looks ok

The question actually is :W required 80%of C on 1Jan20X8. At the date of acquisition C had a building which had a fair value $22m and a carrying amount of $20m. The remaining useful life was 20yrs. At the year end date of 30 Jun 20X8 the fair value of the building was $23m.. C's profit for the year to 30June 20X8 was $1.6m which accrued evenly throughout the year. W measures non-controlling interest at fair value. At June 20X8 it estimated that goodwill in C was impaired by $500,000. workings in the answer page include $1m, which it says to be revaluation gain. This $1m must be ($2.1m-$1.1m) ,right?

It looks to me like the answer hasn't depreciated the building for the half year ended 30 June 2008 In my head I have a revaluation gain at the end of June of $23,000,000 - $21,450,000 = $1,550,000 I don't see where $2.1 - $1.1 comes in Where's the question from? I don't recognise it as an ACCA question

Oh, I've been silly..... $1.55m is revaluation surplus, But the answer added $1m instead of $1.55m. I assume that there is no depreciation charge according to the question and the answer....... ? It did happen in BPP revision kit... Probably the answer is more beautiful if $1m is used. ? Hope the exam won't make me crazy like that..

You're fine! Stop panicking :-)