Hello,
Not clear on the double entry for the reval. decrease.
Is it: CR asset 4250, DR: Equity Reval Reserves 3850 DR P&L Impairemnt Lesses: 400?
In the answer it is SOCI Impairemnt 400 and Impairemnt 3850. How then we Reverse balance on revaluation Revserve of 3850? Is this amount recognized in OCI and then DR to reserves?
Thank you:)
PS. I belive there is error in Chapter on Consolidated Statemnt of Cash flows, answer eg 4, Cash generated from operations does not sum up to 501 but 447.
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OP NOTES, Chapter 9 NCA, Example 2 – Revaluation decrease
6y ago#1As far as double entry goes we would debit revaluation reserve and credit retained earnings
The three 850 would also be reported in OCI. Strictly speaking OCI is not part of the double entry
Thank you for pointing out the cash flow error
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