in the scenario, we were given draft sofp with lots of notes. the draft sofp had the figure for the profit for the year given separately. we had to restate the profits based on the adjustments in the notes.
one such adjustment had to do with the revaluation of land/bldg.
i got the figures correct but in my answer i had added an extra line, which was OCI and it showed the gain on revaluation less the deferred tax.
the answer did not show the OCI figure in the profit restatement and instead showed it in the SOCIE.
why was/is gain on revaluation not shown in a "profit restatement question"
thanks
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preparation of FS for a single company
Did the question ask for statement of profit or loss or did it ask for statement of comprehensive income?
it said:
"prepare a statement showing the recalculation of Dexon's profit for the year ended 31 mar x8"
its question 162 dexon in kaplan kit
Yup! Recalculate the profit implies statement of profit or loss and not, therefore, comprehensive income
Frankly I doubt that you would have lost anything by going on into comprehensive income ....so long as you did show it in comprehensive income and not include it within profit or loss
yes i did .. but it changed my profit figure by that oci amount ....
as usual much obliged!
You're welcome
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