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in chapter 3 example 1
a non current asset with a carrying value of 130.000$ was written down to 95.000$ .The impairment occurred as a result in of a general price changes. The revaluation surplus account contains 25.000$ relating to this asset .in an answer : income statement surplus on the property is (25)
my question is where is the other part 130-95=35; 35-25=10 ?
why this figure (10) was left out of the income statement??
Hi bezanija
I seem to remember having answered this question on numerous occasions in the past. Will you please do me a favour and check out the posts on this page since the start of 2015 – I think you’ll find a previous answer within the last three months
If not then, from memory, I think you’ll find that some of the detail given in the question is implied by the question to have already been accounted for and only a 25 adjustment is now necessary.
The question suggests that the entire 35 has been written off against the statement of profit or loss and we now need to make the adjustment for the 25 that should have gone to the revaluation reserve
If that’s not correct and if you can’t find a previous answer then post again and I’ll look at the question again
Ok?
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