Icaew diploma in ifrss
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| Requirement Determine the carrying amount of the plant at 31 December 2010. (2 marks) c) A company commissioned a valuation of its land and buildings for inclusion in its financial statements. The valuation document contained the following details $m Reconstruction cost 10 Open market valuation 14 Existing use valuation 12 Expected selling costs 0.2 The company's internal calculations indicate a value in use for the property of $16 million. Requirement Determine the value at which the property should be recognised in the financial statements if the company uses the revaluation model. (1 mark) ICAEW\DIPLOMA IN IFRSs Page 4 of 13 1(d) A property development company's office building had a net carrying amount of $18 million at the beginning of the financial year 1 January 2010. The property was held under the cost model. As its residual value was estimated at more than its cost due to a buoyant property market no depreciation had been charged. As part of a relocation of the company's business, the property became vacant and was leased out to a third party on 1 April 2010 (under a six-month short lease. At the time the property was leased out, its fair value was $22 million. At the end of the lease, the company decided to transfer the property to its inventories of properties for sale in the ordinary course of its business. At that date the value of the property was $21 million. The property was sold in December 2010 for $21.3 million. The company uses the fair value model for its investment property. Download 149.62 Kb. Share with your friends:
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