ACCT 301 Lecture Notes - Financial Statement
Document Summary
Up until this section, frs 3 has restructured the p&l, defined the difference between ordinary, exceptional and extraordinary activities. Now, frs 3 takes us a step further. Well, anyone who studied how to revalue assets, which they should before reaching this topic in their studies, knows that revaluation gains are only recognized if a professional external value valued the asset. The holding gain would then be transferred to the revaluation reserve (subject to the deduction of any related accumulated depreciations). So now, we have ,000 in a revaluation reserve. The following format demonstrates how this is done: Profit for the financial year (i. e. profit after tax and extraordinary items if any) 29. Total gains and losses recognized since last annual report 28. The previous topics dealt mostly with the reasons for accounting standards, their concepts, how they"re regulated and some of their limitations. Frs 18, we will now be discussing further accounting issues which are the subject of standards.
