Why capital income not shown in segments in SOPL like we show in capital expenditure?
Like if capital expenditure is done so it is shown in SOFP as NCA while in shown as depreciation in SOPL.
When we sell an NCA so why it is shown as Income in SOPL. It is also a significant amount which should be shown in segments.
This question is more idiotic. Sorry for that.
Ask the Tutor ACCA MA
Capital Income vs Capital Expenditure
4y ago#1If we sell NCA, then it is just the profit or loss on sale that appears in the SOPL.
The reason there is a profit or loss on sale is because the sale proceeds are more or less than the net book value (carrying value) and this is because we have ended up having charged more or less deprecation than it turns out that we should have charged.
So the profit or loss on sale is really adjusting for more or less depreciation and does not need to be shown as some separate category in the SOPL.
Thank you professor.
4y ago#3You are welcome.
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