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Excess depreciation transfer to ret earnings

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Excess depreciation transfer to ret earnings

  • This topic has 3 replies, 2 voices, and was last updated 12 years ago by AvatarMikeLittle.
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  • October 30, 2013 at 10:30 am #144119
    Avatarhasanali95
    Member
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    • ☆☆☆

    Q Ambush (12/05)
    When property is revalued is it necessary to transfer excess dep to retained earnings if its not asked for in the qs?

    October 30, 2013 at 3:27 pm #144149
    AvatarMikeLittle
    Keymaster
    • Topics: 27
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    • ☆☆☆☆☆

    No, it’s not necessary. However, it is seen as good practice to transfer and amount equal to the “excess” depreciation from the revaluation reserve to the retained earnings each year. But that’s not mandatory

    October 30, 2013 at 3:40 pm #144154
    Avatarhasanali95
    Member
    • Topics: 239
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    • ☆☆☆

    Thanks

    October 30, 2013 at 3:45 pm #144157
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    You’re welcome

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