where shown

Other questions 8) Are all types of dividends shown on the face of the statement of cash flows except proposed dividends? 9) Is the only difference (relevant to F3) between statement of comprehensive income and Statement of Profit or Loss is that SOCI contains all of statement of profit or loss but with one extra bit the revaluation profit and loss? Or just profit?

10) When asset is re-valued the new depreciation minus old gets transferred to DR revaluation reserve CR accumulated profits? What statements contain accumulated profits? and why are we DR revaluation? I'm almost there thanks to your excellent help

1) Statement of financial position, and statement of changes in equity 2) Statement of profit or loss only 3) Statement of cash flows only 4) Statement of profit or loss only 5) Statement of profit to loss only 6) Statement of financial position (the amount owing only); Statement of profit or loss (the charge for the year) 7) Note attached to the financial statements 8) All dividends paid appear on the statement of cash flows (I don't know what you mean by the face of it - where else could the appear?!) 9) Your first sentence is correct 10) Accumulated profits = retained earnings and appear on the statement of financial position. Debit revaluation reserve because the excess depreciation is depreciation the revaluation surplus. The trial balance lists the balances on all the ledger accounts. Please confirm that you have read my notes and watched all of my lectures.

i don't understand the second sentence of answer 10)? thanks very much!

The profit on revaluation is credited to revaluation reserve - it is owed to shareholders but kept separate as a capital reserve because it is non-distributable. Depreciating an asset always reduces the amount owing to shareholders - usually by reducing the profit and therefore reducing retained earnings. However the extra depreciation due to the asset having been revalued reduces the revaluation reserve rather than the retained earnings. Can you please confirm that you have read our Course Notes and watched all of my lectures?

Dear John, Can you clear this up? In 2), you say that profit/loss on disposal is given in Statement of profit or loss only. What about Statement of Cash Flows? Aren't these losses/profits entered under Cash Flow from Operating Activities - only, and not in Statement of Profit or Loss? I am unclear. Kindly help.

They are in the Statement of cash flows, but only as an adjustment to the profit in order to get to the operating cash flow. I know it might seem a bit confusing, but the examiner does not regard an item appearing as an adjustment (such as the profit or loss on sale) as a 'real' item in the Statement of cash flows. The only 'real' cash flow resulting from the sale is the cash received. (Also, if the cash flow from operating activities was prepared using the direct method, then the profit or loss on sale would not even be there as an adjustment on the statement.) The profit or loss will, however, always appear in the Statement of profit or loss - there is no exception to this.

I wasn't aware of that! And now that I think of it, that makes perfect sense. I thank you for that. :)

You are welcome :-)