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OP NOTES, Chapter 9 NCA, Example 2 – Revaluation decrease

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › OP NOTES, Chapter 9 NCA, Example 2 – Revaluation decrease

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarStephen Widberg.
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  • July 23, 2020 at 9:26 am #577732
    AvatarAgata
    Participant
    • Topics: 15
    • Replies: 4
    • ☆

    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.

    July 24, 2020 at 7:19 am #577806
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    As 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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