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chapter3 example1 “impairment loss”

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › chapter3 example1 “impairment loss”

  • This topic has 7 replies, 3 voices, and was last updated 11 years ago by MikeLittle.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • October 25, 2012 at 2:26 pm #54871
    sj626
    Member
    • Topics: 5
    • Replies: 6
    • ☆

    Dear teacher,
    i can’t understand the answer about impairment loss , why it is 25k,
    how to get this answer. thanks

    October 26, 2012 at 10:41 am #106057
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    Hi

    the question specifies that, with reference to the asset which needs to be impaired by 35, the revaluation reserve includes 25 related to that asset.

    The impairment entry is therefore to debit revaluation reserve with 25 ( which is in the reserve and which relates to the asset ) and the surplus impairment of 10 will coume off the Statement of Income as an expense

    October 27, 2012 at 4:20 pm #106058
    sj626
    Member
    • Topics: 5
    • Replies: 6
    • ☆

    Thank you very much , Now I understand. 25 is reserve the balance of revaluation surplus, and another 10 is in statement of income as expense. Thanks again

    October 27, 2012 at 8:15 pm #106059
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    You’re welcome

    February 23, 2014 at 10:59 pm #159908
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 5
    • ☆

    Hi,

    why the 10 comes off the Statement of Income as an expense rather than as a deficit on revaluation of investments in OCI ..

    February 24, 2014 at 3:57 pm #159945
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    Because I tend to combine Statement of Income with Statement of Comprehensive Income. I should then refer to the combined Statement as Statement of Comprehensive Income.

    You are correct, the answer should refer to Statement of Comprehensive Income

    February 26, 2014 at 9:41 pm #160578
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 5
    • ☆

    thanks

    February 27, 2014 at 6:08 am #160589
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    You’re welcome

  • Author
    Posts
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