PLEASE SOLVE THE FOLLOWING BASED ON IAS 36 An entity owns a property which was originally purchased for OMR 300,000. The property has been revalued to OMR 500,000 with the revaluation of OMR 200,000 being recognized as other comprehensive income and recorded as revaluation reserve. The property has a current carrying value of OMR 460,000 but the recoverable amount of the property has just been estimated at only OMR 200,000. What is the amount of impairment and how should this be treated in the financial statements?

PLEASE SOLVE THE FOLLOWING BASED ON IAS 36 An entity owns a property which was originally purchased for OMR 300,000. The property has been revalued to OMR 500,000 with the revaluation of OMR 200,000 being recognized as other comprehensive income and recorded as revaluation reserve. The property has a current carrying value of OMR 460,000 but the recoverable amount of the property has just been estimated at only OMR 200,000. What is the amount of impairment and how should this be treated in the financial statements?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 4BD

See similar textbooks

Similar questions

Entity R measures its non-current assets using the revaluation model. At 30 June 20x2, Entity R purchased a property for R100 000. The property was revalued at 30 June 20x6 to R250 000. The latest valuation report, dated 30 June 20x8, values the building at R95 000. Entity R has adjusted the building shown in non-current assets at 30 June 20x8.Calculate the debit entry in Entity R’s financial statements for the year ended 30 June 20x8
Masa Khit Nha Company accounted for noncurrent assets using the revaluation model. On August 1, 2019, the entity classified a land as held for sale. At that date, the carrying amount of the land was P7,500,000 and the balance in the revaluation surplus was P2,250,000. At same date, the fair value of the land was estimated at P8,250,000 and the cost of disposal at P150,000. On December 31, 2019, the fair value less cost of disposal of the land did not change. The land was sold on February 1, 2020 for P9,000,000. What is the adjusted carrying amount of the land on December 31, 2019?
An entity accounted for land using the revaluation model. On October 1,2020, the entity classified the land as held for sale. At that date, thecarrying amount of the land was P5,000,000 and the balance in therevaluation surplus was P1,500,000. At the same date, the fair value of theland was estimated at P5,500,000. The estimated cost of disposal isP100,000. On December 31, 2020, the fair value less cost of disposal ofthe land did not change. On October 1, 2021, the land was sold forP7,000,000.What amount of OCI is classified to retained earnings in 2021? A. 1,500,000B. 2,000,000C. 500,000D. Zero
A SE company has on its books for its proved property: P/P- tangible assets $50,000 Well and E&F $220,000 Accumulated DD&A $32,000 If the entire proved property is sold for $220,000, what will be any gain or loss? Accouinting
3. Fill in the blanks on the following like-kind exchanges a. b. C. d. e. Adjusted basis of old asset 17000 15000 4000 16000 7000 Boot given 0 0 6000 0 0 FMV of new asset 14000 29000 8000 28000 12000 Boot received 0 0 500 0 4000 Realized Gain/(loss) Recognized Postponed gain/loss Gain/loss New basis of received property
1. E. Adentwi Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the machine on cost over four years assuming a nil residual value.The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines. required :Account for this grant under the netting off method. 2. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the asset was revalued at GH¢32,000.Required:Discuss the accounting treatment required in 2018 and 2019 financial statements.
An entity classified a noncurrent asset accounted for under the costmodel as held for sale at the current year-end. The entity decided at theend of the following year not to sell the asset but to continue to use it. Theasset should be measured at the end of the following year at A. The lower of carrying amount and recoverable amountB. The higher of carrying amount and recoverable amountC. The lower of carrying amount on the basis that it had never been classified as held forsale and recoverable amountD. The recoverable amount
A Ltd owns an owner-occupied asset that is measured using the revaluation model. The asset’scarrying amount at the end of the financial year is R20 000. The fair value of the asset is R27 000.The entity has determined the fair value less costs to sell of the asset as R26 000 and the value inuse as R32 000.Required:Explain how you would calculate the carrying value of the asset and at what value the asset shouldbe presented at in the financial statements.
PT Adista owns land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000. Requested: a. PT Adista decided to use the revaluation model for the land (which is a fixed asset). On December 31, 2018, the company recognized a revaluation surplus of the land amounting to Rp 100,000,000. If on December 31, 2019 it is known that the fair value of the land is IDR 1,060,000,000, make a journal entry that is recorded by PT Astina regarding the land in 2019. b. Describe how the accounting treatment differs between the fixed asset revaluation model and the fair value model of investment property.
An entity purchased an investment property on January 1,2020 at a cost of P4,000,000. The property had a useful life of 20 years and on December 31, 2021 had a fair value of P4,800,000.On December 31, 2021 the property was sold for net proceeds of P4,500,000. The entity used the cost model to account for investment property. What is the gain to be recognized for 2021 regarding the disposal of the property? a. 900,000 b. 500,000 c. 800,000 d. 700,000
A revocable transfer with a consideration received:Consideration received, P400,000.00Fair Market Value of the property at the time of transfer, P738,000.00Fair Market Value of property at the time of death, P545,000.00Amount to be included in the gross estate is:
Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1, 2021, the entity classified as land held for sale. At that date, the carrying amount of the land was P4,000,000 and the balance in the revaluation surplus was P600,000. At the same date, the fair value of the land was estimated at P 4,100,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value less cost of disposal of the land did not change. The land was sold on December 31, 2021 for P4,200,000. What is the amount of revaluation surplus on December 31, 2021?