Revaluation exercises
Tài liệu học tập môn Tài chính công (TCC2001) tại trường Học viện Chính sách và Phát triển. Tài liệu gồm 1 trang giúp bạn ôn tập hiệu quả và đạt điểm cao! Mời bạn đọc đón xem!
Tài liệu liên quan:
Preview text:
Ex1.
What is the annual depreciation charge after revaluation, assuming that the useful life of
the equipment remains unchanged.
- Assume again that Pernice’s equipment has a carrying amount of
HK$800,000 (HK$1,000,000 − HK$200,000). However, at the end of 2017, independent
appraisers determine that the asset has a fair value of HK$775,000.
What is the entry to record the revaluation as at the end of 2017?
Ex 2. AB Ltd. purchased an item of plant for £12,000 on 1 January 20X1. The
plant was depreciated on a straight-line basis over its useful economic life, which was estimated at six years.
On 1 January 20X3 the entity decided to revalue its plant. No fair value
was available for the item of plant that had been purchased for £12,000 on 1 January
20X1 but the replacement cost of the plant on 1 January 20X3 was £21,000.
The plant was sold on 1 January 20X5 for £5,000.
Discuss how AB should account for the above transactions?
Ex 3. With the same scenario of Ex2, except for the transaction of selling the plant
in 20X5. On 1 January 20X4, The fair value of the plant is 3,000.
How much is the carrying amount of plant after the valuation on 01 January 20X4?
How the revaluation taken on 01January 20X4 affects the elements of FS?
Ex 4. How to account for the revaluation if the replacement cost at 1 January 20X3
of the plant in Ex 2 changes to £9,000 and fair value of the plant at 1 January 20X4 changes to £9,000