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ACCA FR：重估收益和重估损失例题

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发布时间：2021-09-23 11:35

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Revaluations

IAS 16 principles

IAS 16 permits the choice of two possible treatments in respect of PPE:

The cost model(carry an asset at cost less accumulated depreciation and any accumulated impairment losses).

The revaluation model(carry an asset at its fair value at the revaluation date less subsequent accumulated depreciation and subsequent impairment losses).

If the revaluation model is adopted,this should be applied to all assets in the entire class(ie if you revalue a building,you must revalue all land and buildings in that class of asset).Revaluations must also be carried out with sufficient regularity so that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

Accounting for a revaluation

There are a series of accounting adjustments that must be undertaken when revaluing a non-current asset.These adjustments are indicated below.

The initial revaluation

You may find it useful in the exam to first determine if there is a gain or loss on the revaluation with a simple calculation to compare:

Revaluation gains

Where an asset’s carrying amount is increased as a result of a revaluation(ie a revaluation gain),this gain is normally recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus.However,the gain should be recognised in the statement of profit or loss to the extent that it reverses a revaluation decrease(ie a revaluation loss)of the same asset which had previously been recognised in profit or loss.

Journal entry:

Dr Non-current asset cost[difference between valuation and original cost/valuation]

Dr Accumulated depreciation[eliminate any accumulated depreciation]

Cr Revaluation surplus[gain on revaluation recognised in other comprehensive income]

EXAMPLE

A company purchased a building on 1 April 20X1 for$100,000.The asset had a useful life at that date of 40 years.On 1 April 20X3 the company revalued the building to its fair value of$120,000.

Required

Calculate the revaluation gain and prepare the journal entry to account for the revaluation.

Revaluation losses

A revaluation loss should be charged to profit or loss.However the loss should be recognised in other comprehensive income and debited to the revaluation surplus to the extent of any credit balance existing in the revaluation surplus in respect of that asset.Any additional loss must be charged as an expense in the statement of profit or loss.

Journal entry:【点击免费下载>>>更多ACCA学习相关资料】

Dr Revaluation surplus[to maximum of original gain/balance in revaluation surplus if lower]

Dr Statement of profit or loss[any additional loss]

Dr Accumulated depreciation[eliminate any accumulated depreciation]

Cr Non-current asset cost[difference between valuation and original cost/valuation]

EXAMPLE

The carrying amount of Zen Co’s property at the end of the year amounted to$108,000(cost/value$125,000 and accumulated depreciation$17,000).On this date the property was revalued and was deemed to have a fair value of$95,000.The balance on the revaluation surplus relating to a previous revaluation gain for this property was$10,000.

Required

Calculate the revaluation loss and prepare the journal entry to account for the revaluation.

Depreciation of revalued assets

The asset must continue to be depreciated following the revaluation.However,now that the asset has been revalued the depreciable amount has changed.In simple terms the revalued amount should be depreciated over the asset’s remaining useful life.