Kaplan: Ch 6 – Question 2 – GoodWine

Hi Chris,

Good vine accounts for for land using the revaluation model and all other classes of assets using the cost model.
30th June X1 – has Grape Vine with Carrying Value of £300,000. 20 yr Dep. The FAIR VALUE of the Grape vine is £500,000.
30th June X2 – Grape with FV of £100,000 have been harvested. Grapes left have a Fair Value of £520,000.

Why is the correct treatment per the question not to recognise a gain of £200,000 (500-300) on 30th June X1? Or Even a gain of £235,000 (520-285) If it was revalued on 30 June X2?

Instead the answer ignores the gain from the carrying value and only recognises a gain of £20,000 (520-500) ?

Thank you,
Cian