Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › PPE – revaluation downwards
- This topic has 3 replies, 2 voices, and was last updated 5 years ago by P2-D2.
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- January 9, 2019 at 1:09 pm #500472
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.
January 11, 2019 at 10:34 pm #500906Hi,
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
January 12, 2019 at 1:49 am #500929Because 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 .
January 14, 2019 at 10:15 pm #501911But if you are not making the transfer then the revaluation reserve cannot be any lower than it was initially and in the numbers you have above it is, unless I’ve misread it.
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