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Statement of cash flows

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Statement of cash flows

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • June 17, 2021 at 8:25 pm #625612
    Priyanka19
    • Topics: 32
    • Replies: 20
    • ☆☆

    Sir, why do we take cost of the NCA as disposal in the NCA account
    We usually have to take the carrying amount as the disposal then why do we also take the cost as the carrying amount?

    June 18, 2021 at 7:31 am #625634
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    On disposal, the cost is transferred to the disposal account and the accumulated depreciation is transferred to the disposal account.

    The carrying amount is the cost less the accumulated depreciation.

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