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Question is from the Answer of Example 1 of Chapter 5 (Dec, 2012 Notes)
Why Retained earnings for 2009 and 2008 are 2,700 and 1,500 respectively?
Thank you!
The 2009 figure of 3,500 is adversely affected by the 500 and the 300 adjustments.
The 2000 retained earnings at 2008 are adversely affected by the 500
Dear Tutor,
i can’t understand fully what the meaning of this sentence “this situation was unlikely to change”, is this mean the Non-current asset have not been in excess of their recoverabe amount, the company made misstake booking.
so we need to adjust 2008 both TNCA and retaied earingWe DO need to adjust 2008 figures. The sentence means that, in the accounting records, the TNCA is shown at a value of 500,000 in excess of its recoverable amount and therefore needs to be impaired ( because the recoverable amount is not likely to increase above the carrying value in the near future )
Thank you very much , now i understand clearly.For a chinese student, the language understanding is more difficulty than calculation.
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