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Why in chapter 3 of F7 is revaluation deficit shown under revaluation reserve in socie…Should not htis be under retained earnings
No, I believe that revaluations are a comprehensive income item and are thus shown both in Statement of Comprehensive Income as well as in Statement of Changes in Equity
Sir, I am asking something else…..my question is why is revaluation loss shown under revaluation reserve heading in socie….should not that be under retained earnings heading ……I had read somewhere that revaluation gain is shown in other comprehensive income and revaluation reserve whereas revaluation loss is shown in statement of profit or loss and retained earnings
It depends on whether the revaluation reserve relates to the asset which is now being impaired. If it does relate to that asset, the revaluation decrease is used, first of all, to reduce that revaluation reserve and then, if there is an impairment greater than the previous revaluations, the excess is written off within Statement of Income
Ok?
Dear Sir,
i have been facing the exam queston on December 2012. in the given an information (v) is Goodwill has been impaired by $ 2 million as at 30 setp 2012. i asking you why dont less impaired in the calculation in Goodwill. see the answer sheet on december 2012
rgds,
Baiju Deo
NepalIt certainly should appear in working W3 “less goodwill impaired since acquisition (just our share) and also in working W2 Goodwill “less goodwill impaired since acquisition” in full ie including any impairment attributable to the nci
Does that help?
Thanks @MikeLittle.
But i got confused now since you used the word impairment…are revaluation loss and impariment interchangeable terms??Probably not, but where a revalued asset is now suffering a downward revaluation, is that not effectively the same as an impairment?
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