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Impairment

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

  • This topic has 2 replies, 2 voices, and was last updated 4 months ago by UsmanAsim.
Viewing 3 posts - 1 through 3 (of 3 total)
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    Posts
  • February 26, 2022 at 11:03 am #649376
    UsmanAsim
    • Topics: 1
    • Replies: 1
    • ☆

    Hello Chris,

    https://www.youtube.com/watch?v=DCnDzUEeBHA&feature=emb_imp_woyt

    Im a bit confused on how excess depreciation transfers have been made in example 2 of the lecture ive linked to above.

    Are transfers from revaluation reserve to retained earnings for excess depreciation done each year subsequently after a revaluation? or is it just done on the first year of revaluation?

    February 27, 2022 at 10:18 am #649427
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6119
    • ☆☆☆☆☆

    Hi,

    No, it is done for every year after the revaluation has been done. Depreciation is an annual charge and so the excess depreciation will therefore arise every year too.

    Thanks

    February 27, 2022 at 2:11 pm #649451
    UsmanAsim
    • Topics: 1
    • Replies: 1
    • ☆

    Thank you so much! much appreciated.

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