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i did the first question named plateau 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
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
sorry,i made a mistake.it is the first question in 12/2007,likely named plateau.i think examiner’s answer was wrong on the available for sale asset.do u think so?
Hello,
once more 😛
ummm I am not sure which part you didn’t get? the asset was undervalued so they stated it at it’s correct amount
according to IAS32 available for sale asset should credit into equity reserve which also reflected in other comprehensive income.only held for sale@ fv through P&L can go directly to the IS,also reflected in the retained earnings.thus answer was wrong here,i suppose.
according to IAS32 available for sale asset should credit into equity reserve which also reflected in other comprehensive income.only held for sale@ fv through P&L can go directly to the IS,also reflected in the retained earnings.thus answer was wrong here,i suppose.
Q-Plateau
(V) The investments in equity instruments are included in Plateau’s statement of financial position (above) at their fair value on 1 october 20X6, but they have a fair value of $9 million at 30 september 20X7.The answer is correct. The investment is held @ FV @ 1/10/X6
But it has got FV of $9000 @ 30/09/X7!
You have to use this FV for your SOFP and the gain of $2500 goes to retained earning calculation.u r right, availble for sale investment should go to equity. so for instance if u had to make statement of changes in equity, u have one column for retained earnings right, and u ll add tht amount there. but in this question u r not asked to do that socie, instead u have to update the retained earning reserve in the sofp only. so do it there.
u r right, availble for sale investment should go to equity. so for instance if u had to make statement of changes in equity, u have one column for retained earnings right, and u ll add tht amount there. but in this question u r not asked to do that socie, instead u have to update the retained earning reserve in the sofp only. so do it there.also retained earnings is part of equity reserve . as we all know under the heading of EQUITY in sofp we see retained earnings. 🙂
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in w5 its call group reserve working ie all reserves available to be included in w5 so if there is any gain on revaluation therefore it would be included in r/e working
but in case that it was mentioned in q that there is revaluation reserve separately from r/e so in this case it would be treated as you mentioned in your qthanks
i got understood a little.However,i hate such question which is not clear in Definition of terms.I thought retained earnings is just retained earnings.Revalation reserve/surplus(gain on avail for sale) should not be a part of the RE. OMG,what a mess!In the exam i will do it in my way so that i will not make any mistake.Hope steven scott will agree that!whatever,i will thank u all,thanks a lot!
i got understood a little.However,i hate such question which is not clear in Definition of terms.I thought retained earnings is just retained earnings.Revalation reserve/surplus(gain on avail for sale) should not be a part of the RE. OMG,what a mess!In the exam i will do it in my way so that i will not make any mistake.Hope steven scott will agree that!whatever,i will thank u all,thanks a lot!
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