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Chapter 11: Q11-5IFRS (page 607)
Tanaka Company has land that cost \(15,000,000. Its fair value on December 31, 2017, is \)20,000,000. Tanaka chooses the revaluation model to report its land. Explain how the land and its related valuation should be reported.
Answer
Land should be valued at $20,000,000 on the balance sheet.
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(Impairment) Presented below is information related to equipment owned by Suarez Company at December 31, 2017.
Cost | \(9,000,000 |
Accumulated depreciation to date | 1,000,000 |
Expected future net cash flows | 7,000,000 |
Fair value | 4,800,000 |
Assume that Suarez will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.
Instructions
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