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Greetings Mike,
I understand when there is fv adjustment of plant and no. of years given, we adjust depreciation in C.R.E.
when there is land, there wont be any depreciation, so we wont be doing any FV adjustment of land in C.R.E. and FV of land to be shown in SOFP. Assuming land is not part of any building. Land on its own.
Is that correct.
The fair value of land as at date of acquisition will be given (if appropriate) in the question so, yes, there will be an increased value of that land in the consolidated statement of financial position
AND, if there has been a change in that fair value post acquisition, that change will be reflected within the statement of profit or loss and the newly reduced value of land will appear on the consolidated statement of financial position
But, as you say, there are no depreciation implications
Does that answer it?
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