Hey,
I got confused by an answer in BPP revision kit in relate to OCI and RE. It is for Q40 Grange, where a foreign property's (belongs to parent reporting entity) revaluation gain $4m taken to OCI and subsequently to OCE in SOFP but a revaluation gain of investment property (also belongs to parent entity) $2m was taken to RE.
Could someone explain why the differ treatment ?
Thanks a lot!
ACCA Forums
SBRRevaluation gain and loss (P2)
Revaluation gains on PPE (IAS 16) are taken to OCI, unless there are losses that were recorded earlier, in such case gains offset the losses first and then remaining goes to OCI,
However incase of investment property (IAS 40) any Revaluation gains or losses always get charged to P&L (R.E)
(have not checked the question)
Thanks a lot for this, captmario. Didn't read much about the IAS40. You are right after checking back to the text book. U are so ready for the paper, are you sitting the Dec exam or you are just one of gurus visiting random sites...
Lol, i am sitting for december exam but i am not really that ready, it's just something i remember from F7 :)
Glad to be of help
Sign in to reply to this topic.