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PQR has a policy of carrying its plant at its fair value and it’s revalued on a yearly basis on the 31 December. The cost of the plant is $800,000 on 1 January 2016 and has a useful life of 10 years. The fair value of the plant on 31 December 2016 is $765,000.
Meanwhile for the year ended 31 December 2017, due to adverse economic condition the fair value of the plant has deteriorated to $600,000. The company do not transfer excess depreciation to the retained earnings.
Determine the amount of expenses recognised in Profit or loss for the year ended 31 December 2017.
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