Senka Co bought a plant on 1 January 20Y1 for $960,000. At the date of acquisition,...

 

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Senka Co bought a plant on 1 January 20Y1 for $960,000. At the date of acquisition, the useful life was estimated to be 20 years and it was depreciated by using straight-line method. On 1 January 20YS, Senka Co changed deperecition method to reducing balance with 20%. Several years later, on 31 December 20Y8, the plant was revalued to $800,000 by an independence valuer. Requirement: i.Critically analyze the international accounting standard which can be used in this event relating to accounting for plant of Senka Company. ii. What amount should appear in Senka Company's statement of profit or loss for depreciation expense for the year ended 31 December 20YS ii. What amount should appear in Senka Company's statement of financial position for the Plant and the Revaluation surplus for the year ended 31 December 20Y8 Note: your answer should show clearly any relevant journal entries. Senka Co bought a plant on 1 January 20Y1 for $960,000. At the date of acquisition, the useful life was estimated to be 20 years and it was depreciated by using straight-line method. On 1 January 20YS, Senka Co changed deperecition method to reducing balance with 20%. Several years later, on 31 December 20Y8, the plant was revalued to $800,000 by an independence valuer. Requirement: i.Critically analyze the international accounting standard which can be used in this event relating to accounting for plant of Senka Company. ii. What amount should appear in Senka Company's statement of profit or loss for depreciation expense for the year ended 31 December 20YS ii. What amount should appear in Senka Company's statement of financial position for the Plant and the Revaluation surplus for the year ended 31 December 20Y8 Note: your answer should show clearly any relevant journal entries.

Answer rating: 100% (QA)

i International Accounting Standard 16 Property Plant and Equipment IAS 16 is the relevant Internati... View the full answer