The following information relates to three companies that use the revaluation model in relation to intangible assets and prepare annual financial statements to 31 December:
(a) Company W acquired an intangible asset for £250,000 on 31 December 2021. This asset was revalued at £225,000 on 31 December 2022 and then at £270,000 on 31 December 2023.
(b) Company X disposed of an intangible asset on 31 December 2023. This asset had a carrying amount of £160,000 on the date of disposal and was sold for £195,000. The company's revaluation reserve included £60,000 in relation to this asset.
(c) Company Y acquired an intangible asset for £80,000 on 31 December 2021. This asset was revalued at £90,000 on 31 December 2022 and then at £65,000 on 31 December 2023. Describe the conditions under which the revaluation model may be used (in accordance with the requirements of IAS38) and explain how each of the above matters should be dealt with in the financial statements of the company concerned.