Determine the amounts that should be recognised in profit

Assignment Help Financial Accounting
Reference no: EM132954580

Question - MTN Ghana Ltd. acquired a brand new property (land and buildings) on 1st January, 2016 for GH¢ 40 million (including GH¢ 15 million in respect of the land).The asset was revalued on the 31st of December, 2017 to GH¢ 43 million (including GH¢ 16.6 million in respect of the land). The buildings element was depreciated over a 50-year useful life to a zero residual value. The useful life and residual value did not subsequently need revision. On the 1st of December, 2018 the property was revalued downwards to GH¢ 35 million as a result of the recession (including GH¢ 14 million in respect of the land). The company makes a transfer from revaluation surplus to retained earnings in respect of realised profit.

Required -

i. Determine the amounts that should be recognised in profit or loss and other comprehensive income for the years ended 31st December 2017 and 31st December 2018.

ii. Explain the reasons for your treatment of the two revaluations that occurred in 2017 and 2018 in the financial statement?

Reference no: EM132954580

Questions Cloud

What is the future value of an eight percent : What is the future value of an 8%, 5-year ordinary annuity that pays $400 each year? Do not round intermediate calculations. Round your answer
Find the average time in the queue for each arrival : Service times are random (exponential) and average 4 minutes per arrival. Find the average time in the queue for each arrival
How many years will take you to reach goal : Your last deposit will be less than $1,500 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal?
Value of average total cost and average variable cost : 1.Please explain in more words following TRUE or FALSE questions. Answers need to be supported with an economic model.
Determine the amounts that should be recognised in profit : Determine the amounts that should be recognised in profit or loss and other comprehensive income for the years ended 31st December 2017 and 31st December 2018
How much should hermes receive as final settlement : It all non-cash are realized at carrying amounts and all the partnership liabilities paid, how much should Hermes receive as final settlement in the partnership
Find out the value of sales : Find out the value of sales if all three companies operating income is 10% of cost of goods sold, cost of goods sold is equal to gross profit in all economics
How might impact the financial statement reviewed : Considering the size of the investment ($500,000 infusion), provide a conclusion on how it might impact the financial statement reviewed in Unit
How the cost of decommissioning the oil rig should be : Explain how the cost of decommissioning the oil rig should be treated in the financial statements for the year ended 31 December Year 1

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd