Question
Answer the questions based on the information given. The company has chosen to use the revaluation model for an item of machinery . The machine
Answer the questions based on the information given.
The company has chosen to use the revaluation model for an item of machinery . The machine was purchased for 40 000 EUR( in cash) on the first day of the fiscal period and required installation expense of 10 000 EUR.
Remeasurement date occurs simultaneously with the companys fiscal period-end.
At the end of the first fiscal period after acquisition, assume the fair value of the machine is determined to be 45 000 EUR.
Assume no taxes exist.
How will the companys financial statements reflect the purchase and change in value of the machine? Record the changes in the following financial statement items:
| Items: | The items will change by the following values: | |
| First day of the fiscal period | Last day of the fiscal period | |
| Property, plant and equipment |
|
|
| Cash |
|
|
| Revenues |
|
|
| Net profit |
|
|
| Other comprehensive income |
|
|
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Selected Chapters From Managerial Accounting Creating Value In A Dynamic Business Environment
Authors: Ronald W. Hilton
Edition
0073043346, 978-0073043340
