dfs - historical cost profit and loss

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
can anyone actually explain what this is, and what the layout for it is please?<BR><BR>my tutor just brushed over this but never actually told us what it was, just that it was part of FRS3<BR><BR><BR>agggghhhhh....panic setting in about the frs's and ssap's

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    dfs - historical cost profit and loss

    Basically this note shows the difference in the depreciation amounts from what the depreciation was on the original cost of a Fixed Asset and how much the new depreciation amount is after it has been revalued. If upwardly revalued then the depreciation is more. So<BR><BR>PBT<BR>+ (if upward revaluation)<BR>Diff in depreciation between historical cost depreciation and actual depreciation on revalued amount<BR>= Historical cost PBT<BR><BR>This is to be able to compare companies meaningfully. Otherwise one company's Fixed Assets would be depreciated at historical costs and another's using revaluation.<BR><BR>hope this helps!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    dfs - historical cost profit and loss

    sorry if I'm being thick, but PBT being Profit before tax?<BR><BR>Thank you so much!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    dfs - historical cost profit and loss

    yes, Profit Before Tax<BR><BR>no worries, you're not being thick. it's bloody hard to remember everything, there's sooooo much to remember!<BR><BR><img src="i/expressions/face-icon-small-smile.gif" border="0">

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