The following data relates to Melrose Ltd Trail balance as at December 31, 2013

Land $166,600,000

Building $ 889,000,000

building accumulated depreciation $96,700,000

The following details are relevant to the draft financial statements which are to be presented to the entity auditors:

Subsequent to a revaluation which took place on December 31, 2013, the land had a fair value of $354,000,000, while the building had a fair value of $948,000,000. The building is depreciated evenly over forty years to a nil residual value, with the charges allocated in a 3:1 ratio between miscellaneous expenses and cost of sales. There as been no adjustments made for the evaluation in the current period, and their effects have not been included in the accumulated temporary differences. The capital allowances granted on the building to date are equivalent to the accumulated depreciation charges against it.

Required:

Account for the revaluation in the year

prepare the relative journal entries

Prepare the extracted statement of financial position and statement of profit or loss /OCI

Answer rating: 100% (QA)

1 Account for the revaluation in the year and prepare the relevant journal entries The revaluation o... View the full answer