IceCap Hotels operates a series of northern European hotels and reports under IFRS On June 30, 2016, IceCap purchased land for 3,000,000 IceCap reports land values on the balance sheet under Property, plant, and equipment The appraisal value for the land (which you can assume is the same as the rec...

Requirement 1 Cost model 12312016 No entry 12312017 DR Impairment loss land 2 ...

IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June 30, 2016,

Question:

IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June 30, 2016, IceCap purchased land for €3,000,000. IceCap reports land values on the under Property, plant, and equipment. The appraisal value for the land (which you can assume is the same as the recoverable amount) was reported as:
Appraisal Date ____________________Land Value
12/31/2016....................................€3,150,000
12/31/2017....................................€2,750,000
12/31/2018....................................€2,850,000
Required:
1. Prepare the journal entries at the end of 2016, 2017, and 2018 to record any changes in value to this land asset if IceCap chooses the IFRS cost model to value this property.
2. Prepare the journal entries at the end of 2016, 2017, and 2018 to record any changes in value to this land asset if IceCap chooses the IFRS revaluation model to value this property.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...