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plethora has adminstarion building which it no longer needs.On 1 july 2009 plenthora plc entered into an agreement to lease the building out to another company.building cost $600000 on 1 jan 2010 and is being depreciated over 50yrs , based on the IAS 16 cost model . plethora plc applies the fv model under ias 40 investment property and the fv model of the building was judged to be $800000 on 1 july 2009 .this valuation had not changed at 31 dec 2009.
q1) what is revaluation surplus that will be recognised ?
i am confuse how to calculated depreciation. how it is 9.5 years ?
Hi,
Can you please just check the date of purchase for the asset. You have it as 1 Jan 2010 and if that is the case then it doesn’t fit with the rest of the information regarding the change in use to IP on 1 July 2009.
Given there has been depreciation for 9.5 years then could the acquisition date be 1 Jan 2000? 9.5 years from then would be 1 July 2009.
Thanks
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