Omega prepares financial statements under International Financial Reporting Standards. In the year ended 31 March 2007 the following transaction occurred:
Omega follows the revaluation model when measuring its property, plant and equipment. One of its properties was carried in the balance sheet at 31 March 2006 at its market value at that date of $5 million. The depreciable amount of this property was estimated at $3.2 million at 31 March 2006 and the estimated future economic life of the property at 31 March 2006 was 20 years.
On 1 January 2007 Omega decided to dispose of the property as it was surplus to requirements and began to actively seek a buyer. On 1 January 2007 Omega estimated that the market value of the property was $5.1 million and that the costs of selling the property would be $80,000. These estimates remained appropriate at 31 March 2007.
The property was sold on 10 June 2007 for net proceeds of $5.15 million.
Explain, with relevant calculations, how the property would be treated in the financial statements of Omega for the year ended 31 March 2007 and the year ending 31 March 2008.