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ABC purchased a building at the year start for $900k. The life of the building is 10 years and there is no residual value. Capital allowances are allowed at 40% for the year. At the year-end the building is revalued to $950k. CT rate is 30%.
What are the entries for the revaluation sir?
Hi,
The entry for the revaluation is as per IAS 16 in that we remove the accumulated depreciation and increase the cost to the revalued amount. The balancing figure goes to the revaluation reserve through other comprehensive income.
Have a go at it and see if you get it correct.
Thanks
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