i m from pakistan i will give u 1million like ... amazing work done by you i saw you video related to IFRS 16-36 love it before my interview as Fixed asset officer helped me alote to understand
Thank you very much for this wonderful lecture! I am revising for my FA exam and the textbooks were quite opaque (and the ACCA website also!) about the treatment of accumulated depreciation when revaluing non current assets. Much love from England and Singapore to you, sir!
Thanks for your very helpful guide. I read IAS16 many times only to understand this fucking revaluation model. Even standart’s B part cant help. Now its getting my eye opened
Thank you so much for the informative illustration. Could you possibly make an example of a revaluation of a fully depreciated asset that has exhausted its useful life?
Thank you so much for this wonderful lecture. However, i would like to know how to treat the same accumulated depreciation if the asset is fully depreciated and management decides to revalue the asset and give another useful life
Sir, I guess the entry u explained In at 9:07 I.e needs to be more detailed as because we are bringing new additions to asset and if we reduce the Accumulated dep this will not satisfy the Ledger balance. So we need to adjust the old depreciation also. Asset dr 5000 To Accumulated dep cr 2000 To revaluation reserve cr 3000 The correct entry should be Asset a/c dr 5000 Accumulated dep ac (15,000/10= 6000) -(4000 already depreciated ) dr 2000 To Revaluation reserve 7000
Good Morning.. If i were to write a essay of my own words regarding the IAS16 revaluation of noncurrent asset, whats the easiest way for me to understand... I am a first year Acc student
hellos sir, your videos are really amaizaing...i have one doubt regarding ind as 16 that...on sale of revalued fixed asset revaluation reserve is transfrred from OCI to profit and loss account or retained earnings??
sir i am from pakistan . i have a question like we transfer revaluation surplus to the extend of excessive depreciation over revalued amount into retained earnings . what about the impairment loss transfer when the deficit depreciation result in due to downward revaluation. in certain book for axample we have impairment loss 20,000 . in upcoming year the asset is revalued upward due to this the impairment loss is reversed as 17500 after deducting ( 20,000/8 which is remaining life)?
The comparison is with original depreciation to revalued amount. Say an asset costing 100 with a life of 10 years has annual depreciation of 10. If later due to revaluation, annual depreciation increases to 14, the excess depreciation will be 4. However, if due to impairment annual depreciation reduces to 11, there is still 1 extra which can be transferred from revaluation surplus to retained earnings.
How does these both methods affect P/L? I mean what is the difference in the impact of the two? Please do reply sir, It is very useful for my CA final exam.
The balance sheet or income statement impact is exactly the same. Its about the presentation aspect of showing the asset at its gross value and separately showing the depreciation as accumulated figure.
What will be the treatment of depreciation in subsequent years? And will the revaluation surplus reduce every year to the extent of excess depreciation due to revaluation?
The depreciation is charged basis the carrying amount. For excess depreciation, choice exists to transfer from revaluation surplus to retained earnings annually
Thank you Sir really helpful. I’ve following questions; 1. What if the assets value decreased after revaluation? 2. Against which accounts Revaluation reserves have to adjusted and it’ll be adjusted proportionally with the remaining useful life of assets or one time can be adjusted?
2. There is a choice to either transfer reval surplus against excess depreciation over the life. Else, the revaluation surplus is transferred to retained earnings after derecognition of the asset
No. I didn't mean that. Depreciation is charged on revalued amount. To the extent of excess depreciation, the amount is transferred to retained earnings
I used the knowledge gained from this to understand accum deprn in my government job! Cheers!
the only video on youtube i could comprehend on this topic, thanks a ton!
Your classes are wonderful. So detailed and to the point. And I am glad you are speaking in English throughout. Cheers
Thanks.
Your tuition is great and excellent. GOD BLESS U
i m from pakistan i will give u 1million like ... amazing work done by you i saw you video related to IFRS 16-36 love it before my interview as Fixed asset officer helped me alote to understand
Thanks Waqas. Happy that it could help. Doesn't matter the nation, we are all accountants with global framework. Good luck
Thank you very much for this wonderful lecture! I am revising for my FA exam and the textbooks were quite opaque (and the ACCA website also!) about the treatment of accumulated depreciation when revaluing non current assets. Much love from England and Singapore to you, sir!
Thanks a lot Sir for the detailed explanation, happy to see ur vedios more on IFRS vs US GAP regarding recovery of impairmental loss.
Thanks for your very helpful guide. I read IAS16 many times only to understand this fucking revaluation model. Even standart’s B part cant help. Now its getting my eye opened
Many thanks for the comments
@@AVCLearning do you have online classes for DIPIFRS
Hi Shweta....! If works for you, we can connect at 8800145588 through WhatsApp to discuss
@@AVCLearning sure I will call on WhatsApp .Thanks 😊
Thank you sir, amazing explanation
Thank you so much for the informative illustration. Could you possibly make an example of a revaluation of a fully depreciated asset that has exhausted its useful life?
If the useful life is over, ideal scenario there is no revaluation.
very helpful sir. thanks from Pakistan
Thank you very much very well explained
Are you writing on board for only you to see?
Increased amount is 50% of NBV or is it 50% of original cost?
I was thinking the assets account didnt record deprn so how is deprn being credited there
Thank you so much for this wonderful lecture. However, i would like to know how to treat the same accumulated depreciation if the asset is fully depreciated and management decides to revalue the asset and give another useful life
u made it easier to understand... thanks..
Sir,
I guess the entry u explained In at 9:07 I.e needs to be more detailed as because we are bringing new additions to asset and if we reduce the Accumulated dep this will not satisfy the Ledger balance. So we need to adjust the old depreciation also.
Asset dr 5000
To Accumulated dep cr 2000
To revaluation reserve cr 3000
The correct entry should be
Asset a/c dr 5000
Accumulated dep ac (15,000/10= 6000) -(4000 already depreciated ) dr 2000
To Revaluation reserve 7000
Good Morning.. If i were to write a essay of my own words regarding the IAS16 revaluation of noncurrent asset, whats the easiest way for me to understand... I am a first year Acc student
Is grossing up method still in use?
So clear!!
What is the significance of revaluation reserve
The reserve allows you to present your assets at market value and still doesn't permit recognition of unrealized profits
hellos sir,
your videos are really amaizaing...i have one doubt regarding ind as 16 that...on sale of revalued fixed asset revaluation reserve is transfrred from OCI to profit and loss account or retained earnings??
Its a balance sheet movement - to retained earnings only
@@AVCLearning ok sir...thank you so much..
sir i am from pakistan . i have a question like we transfer revaluation surplus to the extend of excessive depreciation over revalued amount into retained earnings . what about the impairment loss transfer when the deficit depreciation result in due to downward revaluation. in certain book for axample we have impairment loss 20,000 . in upcoming year the asset is revalued upward due to this the impairment loss is reversed as 17500 after deducting ( 20,000/8 which is remaining life)?
The comparison is with original depreciation to revalued amount. Say an asset costing 100 with a life of 10 years has annual depreciation of 10. If later due to revaluation, annual depreciation increases to 14, the excess depreciation will be 4. However, if due to impairment annual depreciation reduces to 11, there is still 1 extra which can be transferred from revaluation surplus to retained earnings.
How does these both methods affect P/L?
I mean what is the difference in the impact of the two?
Please do reply sir, It is very useful for my CA final exam.
The balance sheet or income statement impact is exactly the same. Its about the presentation aspect of showing the asset at its gross value and separately showing the depreciation as accumulated figure.
@@AVCLearning Thank you sir. The lecture was really helpful.
What will be the treatment of depreciation in subsequent years? And will the revaluation surplus reduce every year to the extent of excess depreciation due to revaluation?
The depreciation is charged basis the carrying amount. For excess depreciation, choice exists to transfer from revaluation surplus to retained earnings annually
Very good
Sir can I contact you and get training for DIP IFRS
thank you sir
Thank you Sir really helpful.
I’ve following questions;
1. What if the assets value decreased after revaluation?
2. Against which accounts Revaluation reserves have to adjusted and it’ll be adjusted proportionally with the remaining useful life of assets or one time can be adjusted?
1. Post revaluation, any revaluation surplus is reduced first. Any additional revaluation loss is then charged to p&l
2. There is a choice to either transfer reval surplus against excess depreciation over the life. Else, the revaluation surplus is transferred to retained earnings after derecognition of the asset
No. I didn't mean that. Depreciation is charged on revalued amount. To the extent of excess depreciation, the amount is transferred to retained earnings
thanks sir
The sound in background was so disturbing. Kindly look into it next time.
sir ur lectures is very helpfull for me my exam is on 11 dec
i need ifrs 6,37,eps plz help me