Variable Value Limited (VAT,) was incorporated on January 1, 2011 when the sole shareholder invested $1,000,000. This is the only financing the firm needed. WL had a single project which it developed over four years. Below are details of the four years of operations. SVL used $900,000 of the funds to purchase land. At the end of 2014 the land was sold for its fair value.

Required:
Complete the following tables. The first table assumes that WL uses the historical cost basis of measurement. The second table assumes that WL uses the revaluation model of measurement. OCT refers to other comprehensive income.

Transcribed Image Text:

(S000's) Revenue (all cash) Expenses (all cash) Fair value of land at end of the year 1150 2014 $2,500 3,000 2,000 S1,500 1,400 1,100 2011 2012 2013 2.300 8 1,700 1,050 2.600 Historical cost basis (S000's) Revenue Expenses Gain on disposal of land Net income 4-year total 2011 $2,500 S3,000 2,000 1,500 9,000 (2,300 (2,600) 1,700,400 (8,000) 2012 2013 2014 comprehensive income) Opening retained earnings Closing retained earnings Cash Land Total assets Share capital Retained earnings Total shareholder's equity S 300 S 700 S1,000 S2,200 900 $1,200 $1,000 Revaluation model (5000's) Revenue Expenses Revaluation gain (loss) Gain on disposal of land Net income OCI for revaluation gain (loss) Comprehensive income Cash Land Total assets 2011 S2,500 $3,000 S2,000 S1,500 S9,000 (2,300 (2,600) (1,700 (1,400) (8,000) 2012 2013 2014 4-year total S 300 700 1,000 S2,200 1.150 S1450 1,000 Share capital Accumulated revaluation surplus Retained earnings Total shareholder's equity