IAS 8 example in F7 notes.

Hi guys,

Any idea on how to solve this particular example. Will the adjustments affect only affect the NCA for year 2008 or both? I am also confused with the revaluations.

Here is what I did.

For the P&L and other comprehensive income for 08, I included a revaluation loss of $500k and got $800k as the profit for the year.

P&L and comprehensive income for 09 I added the revaluation surplus of $300k and got $1800 as the profit of the year.

NB: The retained earnings in SOFP(statement of financial position) for 09 is indicated as $4500 and my calculated retained earnings is $2600.

As for the adjustments in SOFP, for 08 I adjusted the NCA by subtracting the revaluation loss of $500k and the adj NCA reads $1500.

For 09 I added the revaluation surplus of $300k and got $3,100 as the revalued NCA.

I would love to hear from someone who is doing F7 or has done the paper. The example is on page 25 of the opentuition F7 notes.

Thanks in advance guys!