MGT401 GDB # 3 Solution

PFAB (Portugal Football Association Board) is recognized as a non-profit organization. The main objective of association is to uplift the performance of its national football team and promote this game in the country. However, other responsibilities are also include the making of effective decisions with regard to managerial and financial domains. As a non-profit organization, it is also responsible to publish its financial statements in accordance with International Accounting Standards and Local Laws. “Christiano Ronaldo” is one of the world’s renowned and star footballers of Portuguese team which enabled the association to generate huge funds by using his fame. He has announced to retire soon after “FIFA World Cup 2010” held in South Africa.

You are required to identify whether this information is relevant to disclose when PFAB will publish its financial statements as annual report or not? Your comments must be confined in two lines.     

Solution For Idea:
In my opinion this information is relevant to disclose because it is material and will be useful for the users of financial statements

MGT401 GDB # 2 Solution

MGT401 GDB # 2 Solution:
entries will be

debit : asset value by 30000
credit : reveluation surplus by :30000
every year we can charge depreciation 150000/20=7500
if we compare it with depreciation on previous value of 12000 then
120000/20=6000
the difference can be reduced from surplus account and realized as retained earning.
debit: revaluation surplus : 1500
credit retained earning : 1500.
please comment your view on this solution thnx