Example 6 :A company that reports using IFRS acquired an excavator on January 1 , 2
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- Example :A company that reports using IFRS acquired an excavator on January at a cost of $ This excavator represents the companysonly piece of equipment. The company uses fair value for its equipment using IAS This excavator is being depreciated on astraightline basis over its year useful life. There is no residual value at the end of the year period. In both and depreciation would be $ On December the fair value is determined to be $ On December the fairvalue is determined to be $ The companys accounting policy is to reverse a portion of revaluation surplus related to the increased depreciation expense. Determine what accounts would be impacted if this activity is recorded for through Periodic valuation Carrying value.
Related Book For
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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