- This topic has 3 replies, 2 voices, and was last updated 5 years ago by
.
- Posts
1. Why does the revaluation surplus appear on both statement fo financial position and income statement?
2. Where do we post accumulated depreciation to?
3. If accompany does not make profit, what happen to the preference shareholders?1. The revaluation surplus does not appear in the Statement of Profit or Loss (which is what the Income statement is now called). Any increase in the revaluation surplus during the period is show below the SOPL in the Statement of Comprehensive Income simply to inform shareholders what has happened.
2. Accumulated depreciation is not posted anywhere. It appears on the SOFP as a reduction in the carrying value of the non-current assets.
3. They do not get a dividend if there is no profit. (If they are cumulative preference shares, then they will receive the dividend they missed in later years when there is a profit.)
All of the above is explained in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Thanks greatly, can never appreciate you enough. I’m writing FA and MA this March. I’m really enjoying the lectures and it’s explicit and simplified for people with non accounting background like me to understand. It also make me believe it’s possible.
- The topic ‘Revaluation of non current asset’ is closed to new replies.