Revaluation of PPE

The questions I have to ask are:

1) is this another part of your assignment?, and

2) what did Omega do with the other $132,620,000 that they borrowed? and

3) what is Omega’s accounting reference date? and

4) do you believe that I can answer questions when full information is not given to me?

The building has not been revalued (“The balance of the revaluation reserve of $150.05 million solely represents accumulated revaluation surpluses from land up to 1 July 2015”) so they’ve been depreciated for 6 out of 49 years down to $572 million

We need to find the depreciation for the year to 30 June, 2013 and that should be 1/43 of $572 but that looks to be an awful figure ($13.3)

In fact, it looks to me like the useful life of the buildings should be 50 years and not 49 as you have posted

That would give us $13 annual depreciation which is much more likely than $13.302325

So assuming that you have (again) mistyped the question, then we need to charge depreciation on the buildings for 2013 and the carrying value will therefore fall to $559 and that further means that there is an impairment on the buildings of $59 million

For the land the carrying value needs to be reduced from $300 down to $200 so there is a reduction of the revaluation reserve from $150.05 down to $50.05

If the question asks ONLY for the entries for the land, then there’s no need for:

Dr. Reversal revaluation surpluses- Land $150.05
Cr. Land ($300 – $200) $100
Cr. Revaluation Surplus $50.05

What’s the matter with simply:

Dr Revaluation Reserve $100
Cr Land $100

????