Question
Asonoba ltd prepares accounts to 31 December. it acquired an administration block with an estimated useful life of 50 years at a cost of GHs22
Asonoba ltd prepares accounts to 31 December. it acquired an administration block with an estimated useful life of 50 years at a cost of GHs22 million on 1 January 2012. The entity used the building for five and half years until 30 june 2017, when it moved the office to a new building at the factory site. the building was reclassified as an investment property and leased out as at under a 40year lease. The fair value of the building at 30 june 2017 was GHS24million. as at 31st December 2017, the fair value was GHS24.4million.
required Explain the treatment of the building in 2017 financial statements (statement of profit or loss and other comprehensive income and statement of financial position) assuming the entity uses the fair value model for investment properties.
please that's the question
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started