PPE Flashcards
(5 cards)
1
Q
What are the 2 possible treatments of PPE
A
- Cost model
- Revaluation model
2
Q
How do you measure PPE using the cost model
A
Cost - accumulated depreciation - any impairment loss
3
Q
How do you measure PPE using the revaluation model
A
Fair Value - accumulated depreciation - accumulated impairment
4
Q
What is the double entry if you revalue upwards
A
Dr Assets
Cr Revaluation Surplus (OCI)
5
Q
What is the double entry if you revalue downwards
A
Dr Revaluation Surplus (OCI)
Dr P/L (excess)
Cr Asset
