Question: 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

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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