Free CIMA-F1 Web TestEngine Demo

Q11 Multiple choice

TUV owns property that has a carrying amount greater than its original cost due to a revaluation 2 years ago. The property continues to be used by TUV up lo the date of its disposal and is sold for more than its carrying amount.

Which THREE of the following correctly describe the accounting treatment for the disposal of the property?

Select all that apply.

A
The gam on disposal is recognised in the statement ot profit or loss
B
The gain on disposal is recognised in other comprehensive income
C
The property is depreciated based on its original cost up to the date ot disposal
D
The remaining balance on the revaluation surplus is transferred to the statement of profit or loss
E
The property is depreciated based on its revalued amount up to the date of disposal
F
The remaining balance on the revaluation surplus is transferred to retained earnings

CIMA-F1 Web TestEngine demo