- This topic has 1 reply, 2 voices, and was last updated 11 months ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Hello, Dear Tutor
I have one question: let’s say, P transferred an item of plan for $5m, whose carrying amount at that date was $4m, to S. The remaining useful life was 5 years. It can be seen that:
Profit on transfer-$1m
Extra depreciation for one year- $200k
So, my question is: which of them should go to statement of profit or loss?
Thanks in advance,
You can either adjust solely for the net impact of $800k in profit or loss, or alternatively you can make two adjustments in profit or loss. One would be for the removal of the profit with the other the adjustment for the depreciation.