9:20

Example I-Initial Cost On 31 July 2019, a eompany which prepures financial statements to 31 March cach ycar bought a machtine for 5648,000 . This amountr was made ap as follows: The company is VAT-rogisered and teclaims VAT shazged io it by its suppliers. Required Cakulate the cost of the machine in actoodance with the Fyairemsents of LAS16. Example 2-Reraluation Increase Assume Company X owns land. The carrying value of the land before revalaation is 540,000 . The fay value of the land has increased and the current market price is $50,000 Company X values ifs PPEt taing the feraluation model. Required: What entries ase noeded to being the cartying value of the awet in line with the frincigles of the revaluation model in IAS is? Example 3-Revaluation Decrease Assume Company X onss a picce of land in an acea where the ocotomic activity is deteriorating, and the market jrice of land has fallen. The land owned by Coenpary X has a carying valae prior to revaluation of $20,000. The cummt market friee is 525 000 . Rcquired: Assaming this is the first time the land has been revalaed, what entries are necded to bring the carrying value of the asset in line With the principies of the retalaation model in 1AS 16? Example 4-Revaluation with pre-tuisting decreas Assume that ancther piece of land owned by Company X wich an initial value of $20,000 recurded a revaluatice decrease lau year of 53,000 . Due to a changing coonoraic climate, the industrial activity in the arca in which the land is situatod as increasing. The cuerent market grice for that land is estimancd at $21,000 Recuited: What entries are needed to bring the carrying value of the asset in line with the grincinles of the revaluatice model in 1AS I6? Example 5-Revaluation with pre-cxistine surplus Asseme that another piese of land owned by Coctpany X wiel in intitial value of $20,000 recoeded a revaluatice increarie lieg year of $5,000. The market price of land has fallen and the Land En now worth $15,000 Required: What entries ase nesded to bring the carrying value of the aset in line with the principles of the revaluation model in IAS i6