PLANT Ltd acquired a property on 1 January 2018 for its investment potential at a cost...
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PLANT Ltd acquired a property on 1 January 2018 for its investment potential at a cost of GHS200,000. On acquisition, the property was estimated to have useful life of 40 years. PLANT adopted a policy of fair valuation for subsequent measurement. The fair value of the asset at 31 December 2019 was GHS 202,800. Effective 1 January 2019, management of PLANT decided to use the property as business premise. The original estimated useful life remained unchanged. Required: Account for the treatment of this property in the 2008 and 2009 financial statements of PLANT Ltd. PLANT Ltd acquired a property on 1 January 2018 for its investment potential at a cost of GHS200,000. On acquisition, the property was estimated to have useful life of 40 years. PLANT adopted a policy of fair valuation for subsequent measurement. The fair value of the asset at 31 December 2019 was GHS 202,800. Effective 1 January 2019, management of PLANT decided to use the property as business premise. The original estimated useful life remained unchanged. Required: Account for the treatment of this property in the 2008 and 2009 financial statements of PLANT Ltd.
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