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There is also a gain in the statement of comprehensive income and that figure is, in my reckoning, $11,000,000 – $9,500,000 ($10,000,000 cost – $500,000 depreciation for 2.5 years) = $1,500,000
Are you sure that you have copied the dates correctly?
Sir, though i calculated $1.3m which was an error on my part , it is supposed to be $1.5m based on your calculation , this is exactly , where i supposed Kaplan did not talk about and its my basis for query . This revaluation gain ($1.5m) from between 1.1.2003 to 30.06.2005, supposed to be in OCI and then transfer to revaluation surplus/ reserve for the year just as profit to retained earning for the year.
However, i am ok by your agreement with me. Could you please, explain by example ?
Revaluation model conditions:
(1) Revaluation must subsequently be made with *sufficient regularity* to ensure that the *carrying amount does not differ materially from the fair value* at the reporting date
The second condition says when item of PPE is revalued, the entire class of assets to which item belong to must be revalued. Class of assets here, does it mean all tangible and intangible non current asset? for instance property e.g land and building ?
“(1) Revaluation must subsequently be made with *sufficient regularity* to ensure that the *carrying amount does not differ materially from the fair value* at the reporting date”
No greater than 3 years between revaluations
“Class of assets here, does it mean all tangible and intangible non current asset? for instance property e.g land and building ?”
All cars (or all buildings, or all plant, or all fixtures)
That’s what it means by “a class of assets”
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