- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Cost Model
Hi. Referring to Q1 of March/June 2021 PYQ, how does the cost model affect retained earnings?
From the answer, “– Retained earnings would increase by $1,000,000 to $3,600,000.”
Could you please explain how does this come about? Thankyou!
Hi,
Under the cost model the property would not have been revalued to $30m and so the higher depreciation of $1m ($30m/30 years) would not have been charged. If it was not charged then the profits and therefore retained earnings ill both be higher.
Thanks