Suppose the block of offices in question B12.7 was to be valued by a professional expert at £640,000. What effect would this information have on the reported financial statements?

Data from B12.7

City Centre plc has owned a block of offices for many years. The building is recorded in the statement of financial position (balance sheet) at £750,000, the historical cost being £900,000 less accumulated depreciation of £150,000. The recent report of a professional valuer has indicated that the property is valued at £980,000 on an openmarket basis for its existing use. Explain what effect this information will have on the reported financial statements.