Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › revaluation model to cost model
- This topic has 5 replies, 2 voices, and was last updated 8 years ago by
MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
- AuthorPosts
- December 5, 2016 at 9:43 am #353963
Hi Mike,
What adjustments should the entity make if it switches from revaluation model to cost model for its PPE? It is a retrospective application, right? Where should the existing revaluation surplus go?
December 5, 2016 at 10:28 am #353982Reverse the entry that created it!
Dr Revaluation Reserve
Cr TNCADecember 5, 2016 at 12:16 pm #353993Oh thought it was more complicated than that, thank you!
🙂December 5, 2016 at 4:03 pm #354029You’re welcome – but remember, you can only set the carrying value to what it would have been all along if you hadn’t opted for valuation model
December 5, 2016 at 4:18 pm #354042Okay, I’ll keep that in mind 🙂
December 5, 2016 at 4:35 pm #354072You don’t need to remember it for too long – it will all be over before you know it!
- AuthorPosts
Viewing 6 posts - 1 through 6 (of 6 total)
- You must be logged in to reply to this topic.