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i did the first question On 12/2007 exam paper and I doubt whether the answer was wrong which given by the examiner.It ask us to deal with the available for sale investment in consolidation.From the text book ,i know the the gain on revaluation of availble for sale asset goes into equity,which reflected in the other comprehensive income.I think it also tells that it should be credited into Revaluation surplus in BS.But the answer didnot comply with me.it goes into the Retained earnings which i was completely confused.so can anybody tell whether Steve scott gave the wrong anwser
Has the revaluation not only been shown in Comprehensive Income but also in Retained earnings ( ie, into a part of Equity )
but textbook tells that gain on available for sale goes into Equtity reserve.Is Retained earnings is a part of equity reserve,if so,what is the balance account’s name in the Equity of BS?
The name is Plateau i remember,it is the first of consolidation question of the 2007/12.Hope U can find it!
I think we’re looking here at a financial instrument which is dealt with as “at fair value through profit and loss” in which case, the gain is a credit to “profit and loss” ie retained earnings.
In fact, the BPP note at the start of the answer also specifies that treatment.
Dear Madam
I want to know from where i could get help about recent issues which mention in examiner interview about GLOBALIZATION, AUDIT REFORM, etcPlease tell me the recent source my emil address is (mramjad25@gmail.com)
Regards
Amjad
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