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Berba purchases a property for $5 million on 1 January 20X7 for its investment potential. The land element of the cost is $1 million, and
Berba purchases a property for $5 million on 1 January 20X7 for its investment potential. The land element of the cost is $1 million, and the buildings element is expected to have a useful life of 50 years. At 31 December 20X7, local property indices suggest that the fair value of the property has risen to $5.5million. Show extracts from the financial statements of Berba for the year ended 31 December 20X7 in the pro-forma below, using the cost and fair value models
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