[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[EYNewHire]

It's just how would you record the entry. For a sale it would be to credit revenue and debit an asset (cash or a/r). The income statement only has one column for each year so you need to differentiate between a debit and credit. The Year 3 b/s has two columns so you don't need to use parenthesis to differentiate.

[Anonymous]

Ok I see what you mean for the B/S..that makes sense. Not so sure about the income statement. Will try doing it with JEs and see.

Thanks!!

[Anonymous]

I hv a question about the IFRS revaluation G/L. Revaluation losses are reported on I/S and gains on OCI. Lets say that yr 1 we hv a revaluation loss of $1,400,000 and yr 2 we have a revaluation gain of $1,600,000.

The gain would reverse the 1,400,000 loss on I/S. Where will the 200,000 revaluation surplus be reported? In I/S or back into the OCI?

Same question about the losses in current yr that reverse a gain from prior yr. Where is the excess loss recognized? In I/S or OCI?

[Tootsie]

@2014 CPA, I think the 200,000 revaluation surplus would be reported in OCI. 1,400,000 of the revaluation gain will be recognized on the IS to reverse the revaluation loss of 1,400,000 reported on the IS in year 1. The remaining 200,000 will be recognized as a revaluation surplus in year 2 OCI.

Focusing on my weaker areas today. Who's taking the exam this week?? Are you ready to slay the beast?!

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[RandomAlt]

@2014 CPA & Tootsie

Regarding revaluation, this is what I've gotten from CPAexcel:

1)Any gains/losses up to the original cost go to the I/S

2)Any gains above the original cost go to OCI

You have an asset with an original cost of $100K. If year one, FV drops to $90K. You record a 10K loss in I/S. In year two, FV goes up to $105K. You record a 10K gain in I/S and 5K gain in OCI.

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[Tootsie]

@RandomAlt, wouldn't it be a 10K loss in IS and 5K gain in OCI in year 2?

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[RandomAlt]

Just officially hit 1000 review questions attempted in CPAexcel.

841 answered correctly.

I'll take the 84.1%

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[RandomAlt]

@Tootsie

At the end of year 1 the asset was revalued to 90K. Thats the new FV. In year 2 it is again revalued, and this time to $105K.

Year 1:

10K loss. Asset went from 100K to 90K.

Year 2:

10K gain to I/S. The FV of the asset went from 90K to 100K. Just like any normal FV adjustment for an asset owned.

5K gain to OCI. Any gain above the original cost goes to OCI. So gain from 100K (original cost) to $105K

---

A actually took my example above from an actual MCQ, so here is the answer per CPAexcel:

“Under IFRS, an increase in an assets fair value above original cost are recorded in a revaluation surplus account and any decreases in an assets fair value below the original cost are recorded as losses to the income statement. Therefore, the 10,000 decrease in year 1 would have been recorded as a loss to the income statement and the 15,000 increase in year 2 would be recorded as a 10,000 gain to the income statement and 5,000 gain in revaluation surplus (OCI).”

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[Tncincy]

while in panic mode yesterday, I went back to government. I decided I would tighten up on a weak topic. Going back to not for profit today, listening to ninja notes. My plan is to nail down not for profit, inventory stock holders equity (as listed in the ninja notes with wtb questions to follow) and if I am sane afterwards, I will go back to leases or pensions. Please wish me luck, the days are flying by

It begins with a 75
Been here too long as a cheerleader....ready to pass

[SIR AGE]

3 days left of studying and consistently scoring low 80's on progress tests! scaring myself here!!! Hope everyone is doing well

AUD: 5/27 82!
FAR: 7/3 80!
REG: 7/21 76!
BEC: 8/8 78!

[laikmonster]

For those asking the questions about the goodwill, you will see that in the equity method goodwill is calculated by the difference between acquisition price and FV of the net assets. We don't take the acquisition price and divide it by our percent ownership to figure out the total fair value of the subsidiary because we don't own enough of it for that to be a valid extrapolation (I assume), so we just use the AC and the FV of net assets.

Hope that makes sense!! Even though it sounds like everyone has it now.

AUD - 5/29/14 - 90
FAR - 7/1/14 - 90
BEC - 7/18/14 - 88
REG - 8/18/14

Becker

[laikmonster]

I just ran across a nonmonetary exchange question in Becker that makes no sense. The exchange lacks commercial substance and Elbert pays Wanda cash. Yet the answer shows that Elbert recognizes a gain. But…if it lacks commercial substance and boot is paid, no gain can be recognized!! Am I crazy or is this question answered incorrectly?

AUD - 5/29/14 - 90
FAR - 7/1/14 - 90
BEC - 7/18/14 - 88
REG - 8/18/14

Becker

[SIR AGE]

laikmonster, I believe I've seen that question also. If the exchange lacks commercial substance and boot is paid, you are right, there should be no gain. However, the exception is if the boot is > 25% of the total consideration given. In that situation, both parties recognize their respective G/L.

AUD: 5/27 82!
FAR: 7/3 80!
REG: 7/21 76!
BEC: 8/8 78!

[jennibfox]

Laikmonster. Is the boot paid more than 25% of total consideration. If that is the case both parties recognize gains and losses. Hope this helps. Hope everyone studying is coming along. Staying positive is extremely important.

FAR - JULY 2014 - PASSED
BEC - MAY 2015 - PASSED
REG - AUG 2015 - PASSED
AUD - AUG 31 2015

[laikmonster]

Thanks guys! Makes sense.

AUD - 5/29/14 - 90
FAR - 7/1/14 - 90
BEC - 7/18/14 - 88
REG - 8/18/14

Becker

[Author]

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