Question: Bauer Corporation prepares financial statements using IFRS and has elected

Bauer Corporation prepares financial statements using IFRS and has elected the revaluation method of accounting for its fixed assets. Bauer has a December 31 fiscal year-end and revalues its fixed assets at the end of each fiscal year. On January 1, 2012, the company purchased land at a cost of €200,000. Consider the two alternative scenarios that follow:
1. The fair value of the land at December 31, 2012, was €190,000. By December 31, 2013, the fair value of the land had increased to €230,000. What is the financial statement impact of revaluation for the year ended December 31, 2012? December 31, 2013?
2. The fair value of the land at December 31, 2012, was €250,000. By December 31, 2013, the fair value of the land had decreased to €185,000. What is the financial statement impact of revaluation for the year ended December 31, 2012? December 31, 2013?


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  • CreatedFebruary 20, 2015
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