ACCA FR CBE Practice Question Klopp

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[@sayhellotoroy]

Thanks. Very useful and nice to see setup close to exam. There is a mistake in revaluations. Another tip is to use formulas and not calcualte and print text inside cells.

[@abhinavnarayanan9867]

The Revaluation working shown is wrong in the video. Check out the answer in the notes, page 131. That's the correct one!

[@ErniSusanty]

isit on share premium "600,000 x 1,80 instead of 0,80??

[@chillingfun4755]

@@ErniSusanty no, only the surplus above the par value will be taken to share premium, which in this case the par value is 1, so any excess above 1 is considered a premium which is = (1.8 - 1) = 0.8

[@chillingfun4755]

Yes the the revaluation part is incorrect,
you should compare the "Building" CV which is 4,500,00 on (1st, June 2017) with "Building" FV which 5,400,000 on (1st, June, 2017). Revaluation Surplus = (5,400,000 - 4,500,000) = 900,000
"Land" CV is 500,000 (as land does not depreciate) and "Land" FV = 600,000, so Revaluation Surplus = (600,000 - 500,000) = 100,000
Total Revaluation Surplus = (900,000 + 100,000)
Total Revaluation Surplus = 1,000,000

[@sfgedgnrepg]

@@chillingfun4755 Yeah, I was confused by the video, until I saw the answer

[@sayhellotoroy]

@@chillingfun4755 This. I was also confused there were many example before, and now in this big questions it is all messed up by the lecturer. How come? :)

[@nalayehe7974]

equity shares on20/06/20x8 is 2,400,000shares.which already includes 600,000shares.

[@SKRPro-sp2cw]

2400000 shares are on 30/07/20X7

[@manilli_]

@@SKRPro-sp2cw The question says 20X8

[@chillingfun4755]

Revaluation Surplus part is incorrect --> View Correction Below:
>
"Building" CV after 5 years of Dep which is 4,500,00 on (1st, June 2017) with "Building" FV which 5,400,000 on (1st, June, 2017).
Revaluation Surplus = (5,400,000 - 4,500,000) = 900,000
"Land" CV is 500,000 (as land does not depreciate) and "Land" FV = 600,000, so
Revaluation Surplus = (600,000 - 500,000) = 100,000
Total Revaluation Surplus = (900,000 + 100,000) = 1,000,000

[@harold7089]

Revaluation Reserve for buildings should be 880,000 (900,000 - 20,000) and 100,000 for the land. I removed the excess depreciation charged (after revaluation) and debited the OCI. I believe the answer should be 980,000

[@mojimohammadee9102]

okay