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Premier dec 2010

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Premier dec 2010

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.
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  • May 28, 2014 at 6:51 pm #171506
    nari
    Member
    • Topics: 261
    • Replies: 176
    • ☆☆☆

    Hello, in note 1 of the question , the last line says “the land element of Premier’s property had increased in value by $500,000 as shown in OCI”.

    My question is why wasn’t the increase shown in arriving at the PPE in the SOFP answer?…Is it because since they have mentioned it as being in the OCI, we take that to mean that it has also been adjusted in the SOFP question?

    May 28, 2014 at 7:14 pm #171512
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    Ok, here’s a question for you ….. if 500,000 has been credited through OCI, and it relates to an increase in the value of PPE (land in particular) where’s the debit?

    If you need to ask, please do so 🙂

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