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I am doing a cashflow question and current asset are as follows
$510 $ 688
There is a revaluation reserve in 2010 of 60 and the notes states that non current assets include certain properties which were revalued in the year
This is my answer:
Purchase of new asset $118
but I am not sure what to do with the revaluation. I just left it out
You have posted this in the F2 forum – cash flows statements are not examinable in F2. I assume that you meant to post it in the F3 forum 🙂
If there was no revaluation reserve in 2009, then it means that the assets were revalued this year.
So the revaluation would put the value up to 570 (510 + 60) and the acquisitions would only be the extra 58 (assuming of course that there was no depreciation this year – which surely there is – and that there were no disposals).
I do suggest that you watch our free lectures on Statements of cash flows (and on everything else – they are a complete course for Paper F3).
I got 118 to be the extra for acquistion
can you verify thank you. thank for lectures
Sorry – you are correct.
The extra for acquisition is 118 (but it is strange if there is no mention of depreciation, because this would make it different).
thank you the question did have depreciation of $87,000 hence the acquisition value I got was $205,0000
Therefore acquisition changed to 205,000
That is correct 🙂
You are welcome 🙂