MTN Ghana Ltd acquired land and building on 1st January 2016 for 40million(including 15million in respect of the land). The asset was revalued on the 31st/12/2017 to 43million(including 16.6million) in respect of the land. The buildings was depreciated over a 50 year useful life to a zero residual value. The useful life and residual value did not subsequently need revision.

On the 31/12/2018, the property was revalued downwards to 35 million as a result of recession (including 14million) in respect of the land. The company makes a transfer from revaluation surplus to retained earnings in respect of realised profit.

1. Determine the profits that should be recognized in profit/loss and other comprehensive income for the years ended 31/12/2017 and 31/12/2018

2. Comprehensive income for the years

Answer rating: 100% (QA)

MTN GHANA LTD Revaluation of property plant and equipment Particul... View the full answer