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revaluation reserve and bonus
Accountancy
sir in the last part of the video you say bonus will treated like abnormal if already accounted. but in the previous one you said no adjustment required. so what should we assume if the ques gives no clear info about bonus being deducted from pre or post but only says its accounted for? also if revaluation reserve is already existing in the BS ie. revaluation is already carried out by the subsidiary, should it also be treated like abnormal items? Video Details ------------- P1 - Advanced Accounting - Without AS Consolidated Financial Statements #21. Treatment of Bonus - 2
Answers (5)
sir, so if we assume from pre we will just deduct in after time adjustment from pre acquisition profits. am i correct sir? and also we will take the assumption its deducted from post only if the ques mentions it. yes sir? (bcz in the last part of this video sir is giving the abnormal item treatment i.e, add back to post, time adj. , and then deduct from pre if already accounted for)
Thread Starter
Pooja Sreesir, so if we assume from pre we will just deduct in after time adjustment from pre acquisition profits. am i correct sir? and also we will take the assumption its deducted from post only if the ques mentions it. yes sir? (bcz in the last part of this video sir is giving the abnormal item treatment i.e, add back to post, time adj. , and then deduct from pre if already accounted for)
1. Yes 2. If its already accounted for, we need to add back and compute the actual post profit and then again delete it. You will get a hang of it once you practice a couple of questions