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Profit or loss is the total income less expenses or the bottom line in the traditional
income statement, which was already solved by the previous reporter. Now we will
solved for the other comprehensive income.
Based on the given problem, the component of OCI that is present is the
revaluation surplus. Revaluation surplus is equal to the fair value or depreciated
replacement cost (sound value) minus the carrying amount of the PPE. Base on not (ii),
Land and building are revalued to market value, 12 million for land, and 35 million for
building.
For the Land, the fair value is 12 million less the cost of 10 million based on the
trial balance, so we will have revaluation surplus of 2 million. For the building, the fair
value is 35 million less the carrying amount which is 50 million, since 10 million is
attributed to land, less the accumulated depreciation of 20 million we will get 30 million
as carrying amount. Thus, the revaluation surplus for building will be 5 million. So the
total revaluation surplus that will be added to the net income in order to the Total
comprehensive income would be a total of 7 million. So the Total comprehensive income
will be 38,200,000.