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Sir can you help me with this

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Sir can you help me with this

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 21, 2021 at 1:08 pm #636131
    dennissherpa101
    Member
    • Topics: 58
    • Replies: 60
    • ☆☆

    Hello sir, for the revaluation decrease example two.
    Can we write
    Dr revaluation reserve 4250
    Dr accimulated depn 1750
    Cr ppe 6000

    Rather than dr oci 3850
    Dr profit/loss 400
    Cr 4250

    September 21, 2021 at 7:46 pm #636170
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    Hi,

    The two journals presented are totally different and so I’d have to say no. The first one reduces the asset value by 6,000 whereas the second one recues it be 4,250. This would lead to a different carrying value of the asset following the fall in its value.

    Thanks

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