• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Depreciation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Depreciation

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 17, 2018 at 3:24 pm #459144
    elvira02
    Member
    • Topics: 4
    • Replies: 1
    • ☆

    The following trial balance extract relates to a property which is owned by Veeton as at 1 April 2014:
    Dr Cr $’000 $’000 Property at cost (20 year original life)12,000
    Accumulated depreciation as at 1 April 2014 3,600

    On 1 October 2014, following a sustained increase in property prices, Veeton revalued its property to $10·8 million.
    What will be the depreciation charge in Veeton’s statement of profit or loss for the year ended 31 March 2015?
    A $540,000 B $570,000 C $700,000 D $800,000

    sir I did not understand the solution :

    Six months’ depreciation to the date of the revaluation will be $300,000 (12,000/20 years x 6/12);
    ”six months’ depreciation from the date of revaluation to 31 March 2015 would be $400,000 (10,800/13·5 years remaining life x 6/12)”.
    sir i did not understand this 2nd one calculation.
    How is 13.5 years

    June 17, 2018 at 7:59 pm #459189
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7172
    • ☆☆☆☆☆

    Hi,

    You have to work out how many years of depreciation have already been charged based upon the accumulated depreciation of $3,600.

    One year worth of depreciation is $12,000/20 years = $600.

    As $3,600 has been accumulated then 6 years of depreciation must have been charged ($3,600/$600), and hence 14 years remaining at the start of the financial year.

    As the asset is revalued after 6 months of the financial year then there will be a remaining useful life of 13 years and 6 months (i.e. 13.5 years).

    Hope that helps.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Hamza101 on Sub-leases – ACCA (SBR) lectures
  • AdityaSairam on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • verweijlisa on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in