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Hello sir, for Example 2 – Revaluation decrease in the opentuition notes,
if we didn’t transfer the excess depreciation (Dr Revaluation reserve Cr RE),the answer will it be like this?Dr Revaluation reserve $4.25m (previous has $4.4m)
Dr accumulated depn $1.25m
Cr PPE $6mand how to show the revaluation decrease(Dr revaluation surplus gain before) in the SOCE ?Is it called revaluation decrease and put bracket and minus from bal b/d?Thank you.
Hi,
Why would the revaluation reserve be lower at $4.25 m if we haven’t made the transfer?
Yes, the revaluation decrease is shown as a negative figure.
Thanks
Because the Revaluation decrease to $8m in Dec 2015
CV = $14m – 1.75(depreciation)
=$12.25
compare to new fair value = $8m
total decreased revaluation = $4.25mThank you .
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