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Revaluation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Revaluation

  • This topic has 5 replies, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • June 24, 2021 at 9:35 am #626207
    Avatarmaximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    What is annual excess depreciation treatment if RBM is used? In SLM, we just subtract depreciation for year before revaluation and after revaluation. What is treatment if RBM is used before and after revaluation.

    June 24, 2021 at 5:20 pm #626222
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    I do not know what you mean by RBM and SLM. They are not standard acronyms (and certainly not ones that are used in the exam).

    June 25, 2021 at 6:45 am #626256
    Avatarmaximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Sorry sir, I forgot to write their abbreviations. I meant SLM for Straight line method and RBM for Reducing balance method.

    June 25, 2021 at 7:22 am #626264
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    It is the same treatment for both methods – the difference between the depreciation on the revalued amount and what the depreciation would have been if they had not revalued.

    June 25, 2021 at 11:16 am #626278
    Avatarmaximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Ok sir. Thank you.

    June 25, 2021 at 1:36 pm #626289
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Revaluation’ is closed to new replies.

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