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I’ve just done the MCQs in the Revision Kit and it is clear that I am struggling on this topic. Can you please give me some advice on how to improve on here?
Thanks
Write me a specific query like “How do we arrive at this figure?” or “Where does this come from?” and I can give you guidance
What I can’t do is write out a complete lecture for you
And if you’ve struggled but eventually arrived at where figures are coming from, then do the same questions again and see if you get the correct solution
Then do it again, but get the correct solution quicker
I have a question: I don’t understand what the journal entry should be when recording an impairment if:
1) the asset was held at cost
2) the asset was revalued.
Please help!
Thank you in advance
1) Dr statement of profit or loss expense
Cr TNCA2) Dr Revaluation reserve
Cr TNCAIn that second one, we can only debit the revaluation reserve with as large an amount as is already in the revaluation reserve
If the impairment is greater than previous revaluation surpluses not so far treated as realised, then any excess will be debited to statement of profit or loss
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