On 1 April 2003, Comfortable Singapore Group (CSG) purchased a freehold property in County Andrew with an
Question:
On 1 April 2003, Comfortable Singapore Group (CSG) purchased a freehold property in County Andrew with an original cost of $10 million. On 31 March 2005, a revaluation was made and resulted in a carrying amount of $12 million.
The accumulated depreciation of $400,000 up to 31 March 2005 was frozen. No revaluation was made in 2006 and 2007. On 31 March 2008, when the fair value of the property increased to $15 million,
CSG signed a lease to rent out the property for rental purpose. CSG proposed to continue to revalue the property on a regular basis.
Required:
Calculate the revaluation surplus as at 31 March 2006.
Calculate the carrying amount as at 31 March 2008.
Calculate the revaluation surplus as at 31 March 2008.
Give the journal entries for the year ended 31 March 2008.
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield