(Appendix) ABC adheres to IFRS and applies the revaluation model to account for its Machinery.Prior to 2009,there was no balance in the company's Revaluation Surplus (OCI) accounts relating to its long-lived assets.The following year-end data pertains to the company's machinery: $$\begin{array} { l c c l }
& \text { Cost } & \text { Accumulated Depreciation } & \text { Fair Value } \
2009 & \$ 180 & 10 & \$ 120 \
2010 & \$ 180 & 20 & \$ 125 \
2011 & \$ 180 & 30 & \$ 130
\end{array}$$ Required:
For each year,provide the revaluation entries assuming that ABC applies:
a) The elimination method and,
b) The proportional method.

Question

(Appendix) ABC adheres to IFRS and applies the revaluation model to account for its Machinery.Prior to 2009,there was no balance in the company's Revaluation Surplus (OCI) accounts relating to its long-lived assets.The following year-end data pertains to the company's machinery: $$\begin{array} { l c c l } 
& \text { Cost } & \text { Accumulated Depreciation } & \text { Fair Value } \
2009 & \$ 180 & 10 & \$ 120 \
2010 & \$ 180 & 20 & \$ 125 \
2011 & \$ 180 & 30 & \$ 130
\end{array}$$ Required:
For each year,provide the revaluation entries assuming that ABC applies:
a) The elimination method and,
b) The proportional method.

Quizplus · Accepted Answer

The Answer of (Appendix) ABC adheres to IFRS and applies the revaluation model to account for its Machinery.Prior to 2009,there was no balance in the company's Revaluation Surplus (OCI) accounts relating to its long-lived assets.The following year-end data pertains to the company's machinery: $$\begin{array} { l c c l } 
& \text { Cost } & \text { Accumulated Depreciation } & \text { Fair Value } \
2009 & \$ 180 & 10 & \$ 120 \
2010 & \$ 180 & 20 & \$ 125 \
2011 & \$ 180 & 30 & \$ 130
\end{array}$$ Required:
For each year,provide the revaluation entries assuming that ABC applies:
a) The elimination method and,
b) The proportional method.

(Appendix) ABC Adheres to IFRS and Applies the Revaluation Model