Does anybody have the lsbf mock exams for paper F7 AND F8 for Dec 2012? please e-mail at email@example.com
f7 starter. I will please help me solve this question
Ballec PLC the year ending 31 December 2012
ii) Building X and building Y were both purchased 5 years ago for £1m each and were estimated to have useful lives of 50 years at acquisition. Building X is used in the business of Ballance plc whereas building Y is an investment property. Ballance uses the fair value method as allowed by IAS40 to value investment properties.
As at 31 December 2011 both buildings were valued at £2m each and these valuations were reflected in the accounts for that year. Remaining useful lives of both buildings were revised to 50 years at that date.
At 31 December 2012 both buildings were valued at £2.5m each. These valuations are to be reflected in the accounts.
Ballance plc provides depreciation on a straight line basis charging one month depreciation for each complete month of ownership.
accounting property revaluation upward both year even though the first year’s revaluations were reflected in the accounts , but 2012 revaluation has to been accounted.
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