BA107 Financial Accounting 1 Lecture 5 Accounting for Tangible and Intangible

Ba107 financial accounting 1 lecture 5 accounting for

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BA107 Financial Accounting 1 Lecture 5 Accounting for Tangible and Intangible Assets Lecture 5.1: MFRS 116 Property, Plant and Equipment Answer (a) Accumulated depreciation - gross carrying amount is restated proportionately Dr 20x2 RM Assets (SOFP) 200.00 Bank (SOFP) Depreciation (SOPL) 20.00 Accumulated depreciation (SOFP) (RM200,000/10 years = RM20,000) Dr 20x3 RM Depreciation (SOPL) 20.00 Accumulated depreciation (SOFP) 20x4 Depreciation (SOPL) 20.00 Accumulated depreciation (SOFP) Assets (SOFP) 10.00 Revaluation reserve (SOFP) (Revaluation surplus=RM150,000-[RM200,000-RM60,000] = 10,000 20x5 Depreciation (SOPL) 21.43 Accumulated depreciation (SOFP) (Fair value 1 Jan 20x5=RM200,000+RM10,000 = RM210,000 (Depreciation = (RM210,000-RM60,000)/7 years = RM21,428) b) Accumulated depreciation - eliminated against the gross carrying amount 20x2 Assets (SOFP) 200.00 Bank (SOFP) Depreciation (SOPL) 20.00 Accumulated depreciation (SOFP) (RM200,000/10 years = RM20,000) 20x3 Depreciation (SOPL) 20.00 Accumulated depreciation (SOFP)
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BA107 Financial Accounting 1 Lecture 5 Accounting for Tangible and Intangible Assets Lecture 5.1: MFRS 116 Property, Plant and Equipment
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BA107 Financial Accounting 1 Lecture 5 Accounting for Tangible and Intangible Assets Lecture 5.1: MFRS 116 Property, Plant and Equipment 20x4 Depreciation (SOPL) 20.00 Accumulated depreciation (SOFP) Assets (SOFP) 10.00 Revaluation reserve (SOFP) (Revaluation surplus=RM150,000-[RM200,000-RM60,000] = RM10,000) Accumulated depreciation (SOFP) 60.00 Assets (SOFP) 20x5 Depreciation (SOPL) 21.43 Accumulated depreciation Fair value at 1 Jan 20x5=RM150,000 Depreciation = RM150,000/7 years = RM21,428 Example 5.1e Pg369-370 Date of purchase of the assets: 1 January 20x4 RM'000 Cost of the assets 4,000.00 Accounting policy: Revaluation model Fair value of the assets as at 31 Dec 20x4 4,800.00 20x5 5,100.00 20x6 4,200.00 Date of disposal of the assets: 1 Jun 20x7 Disposal price 4,600.00 Answer The assets were initially recognized at RM4 million. On 31 Dec 20x4: Fair value 4,800.00 Carrying value 4,000.00 Revaluation surplus 800.00 RM800,000 revaluation surplus credit to revaluation reserve account. The surplus also disclosed in t On 31 Dec 20x5: Fair value 5,100.00 Carrying value 4,800.00 Revaluation surplus 300.00
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BA107 Financial Accounting 1 Lecture 5 Accounting for Tangible and Intangible Assets Lecture 5.1: MFRS 116 Property, Plant and Equipment RM300,000 revaluation surplus credit to revaluation reserve account. The surplus also disclosed in t
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BA107 Financial Accounting 1 Lecture 5 Accounting for Tangible and Intangible Assets Lecture 5.1: MFRS 116 Property, Plant and Equipment On 31 Dec 20x6: Fair value 4,200.00 Carrying value 5,100.00 Revaluation deficit (900.00) On disposal of the assets: Sale proceeds 4,600.00 Less: Carrying value 4,200.00 Gain on disposal 400.00 Example 5.1f Pg370 Date of purchase of the assets: 1 January 20x3 RM Cost of the assets 3,000.00 Accounting policy: Revaluation model Fair value of the assets as at 31 Dec 20x4 2,750.00 20x5 3,400.00 The assets were initially recognized at RM3 million. On 31 Dec 20x3: Fair value 2,750.00 Carrying value 3,000.00 Revaluation deficit (250.00) RM250,000 revaluation deficit debit to Statement of Other Comprehensive Income On 31 Dec 20x4: Fair value 3,400.00 Carrying value 2,750.00 Revaluation surplus 650.00 RM900,000 deficit is due to surpluses during the previous revaluation. RM900,000 deficit debit to re deficit also disclosed in the other comprehensive income.
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