DFS Fair value adjustments

angharadmai Registered Posts: 41 πŸ’« 🐯 πŸ’«

Doing past papers for the DFS exam at the moment, and in the June 2010 and Dec 2009 exam, there is a fair value adjustment for the non-current assets but we are told to ignore any effect on the depreciation.
Does anyone know if this is the case every time or is it possible that we may have to account for the change in depreciation?




  • Steve Collings
    Steve Collings Registered Posts: 997
    Generally they do not ask you to do anything with the depreciation element of the FV adjustment. However, in the rare event they did, any additional depreciation would be debited to the consolidated retained earnings and of course credited against non-current assets to reduce the carrying value (assuming the statement of financial position is being tested).

    Kind regards
  • angharadmai
    angharadmai Registered Posts: 41 πŸ’« 🐯 πŸ’«
    Many thanks for your reply Steve.

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