Impariment loss ..

topcattopcat Trusted RegularPosts: 452Registered
Another one i am not understanding really not very good at this!

I am not sure for the reasoning behind £300,000

I though the revaluation reserve would be

gain £300,000
the there is the loss of £360,000

this is where i have no idea what to do ?

ZcNeY.jpg

Comments

  • NpsNps Experienced Mentor Posts: 782Registered
    The £300,000 revaluation would be shown as a revaluation surplus in the SOCI when first revalued. When it is revalued back down, that first £300,000 is taken from the revaluation surplus in the SOCI, but the final £60,000 is shown as an immediate expense so would be shown in the normal profit and loss statement. The question is only asking about the SOCI not the statement of profit/loss (quite often these are shown on the same statement but they can also be separate statements).
  • topcattopcat Trusted Regular Posts: 452Registered
    Nps wrote: »
    The £300,000 revaluation would be shown as a revaluation surplus in the SOCI when first revalued. When it is revalued back down, that first £300,000 is taken from the revaluation surplus in the SOCI, but the final £60,000 is shown as an immediate expense so would be shown in the normal profit and loss statement. The question is only asking about the SOCI not the statement of profit/loss (quite often these are shown on the same statement but they can also be separate statements).

    Thanks for this explanation NPS this has finally clicked, i was a bit slow on understanding so have come back to it and all good :thumbup1:
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