QUESTION 3 (IAS 16: Revaluation) AnTech has a year end of 31 March and acquired Equipment...

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QUESTION 3 (IAS 16: Revaluation) AnTech has a year end of 31 March and acquired Equipment A and Equipment B on 1 Apr 2010. The estimated useful life at acquisition is 8 years for Equipment A and 6 years for Equipment B. Both items are depreciated on a straight-line basis with no estimated residual value. For Equipment, the entity applies the revaluation model under IAS 16. For both items, there was no revaluation adjustment prior to 1 Apr 2012. However, there is a sudden change in fair value on 1 Apr 2012 as below. Fair Value at 1 Apr 201 Carrying amount at 31 Mar 2012 ($) Estimated Cost Total Useful life Accumulated depreciation Fair Value Equipment A 8 years 240,000 (60,000) 150,000 Equipment B 6 years 120,000 (40,000) 112,000 On 31 Mar 2013, no revaluation adjustment is required. On 31 Mar 2014, Equipment A has a fair value of 135,000 and Equipment B was sold on that date for cash $80,000. The entity uses elimination method for revaluation adjustment. It makes an annual transfer from its revaluation surplus reserve to retained earnings in respect of excess depreciation. Required: Ignore tax. Narratives explaining the journal entries are not required. You may calculate all amounts to the nearest dollar. (b) A formal presentation of financial statements is NOT required. For the year ended on 31 Mar 2014, what's the profit and total comprehensive income, respectively? Ignore income and expense not related to the question. QUESTION 3 (IAS 16: Revaluation) AnTech has a year end of 31 March and acquired Equipment A and Equipment B on 1 Apr 2010. The estimated useful life at acquisition is 8 years for Equipment A and 6 years for Equipment B. Both items are depreciated on a straight-line basis with no estimated residual value. For Equipment, the entity applies the revaluation model under IAS 16. For both items, there was no revaluation adjustment prior to 1 Apr 2012. However, there is a sudden change in fair value on 1 Apr 2012 as below. Fair Value at 1 Apr 201 Carrying amount at 31 Mar 2012 ($) Estimated Cost Total Useful life Accumulated depreciation Fair Value Equipment A 8 years 240,000 (60,000) 150,000 Equipment B 6 years 120,000 (40,000) 112,000 On 31 Mar 2013, no revaluation adjustment is required. On 31 Mar 2014, Equipment A has a fair value of 135,000 and Equipment B was sold on that date for cash $80,000. The entity uses elimination method for revaluation adjustment. It makes an annual transfer from its revaluation surplus reserve to retained earnings in respect of excess depreciation. Required: Ignore tax. Narratives explaining the journal entries are not required. You may calculate all amounts to the nearest dollar. (b) A formal presentation of financial statements is NOT required. For the year ended on 31 Mar 2014, what's the profit and total comprehensive income, respectively? Ignore income and expense not related to the question.

Answer rating: 100% (QA)

To determine the profit and total comprehensive income for the year ended 31 March 2014 we need to c... View the full answer