Question
Bronte Ltd has an accounting policy of measuring property, plant and equipment at cost. It has a parcel of land, which it acquired in 2021
Bronte Ltd has an accounting policy of measuring property, plant and equipment at cost. It has a parcel of land, which it acquired in 2021 at a cost of $500 000. In 2022 it was determined that the recoverable amount was $450 000.
In 2023 the organisation switched to the fair-value model. The land was considered to have a fair value of $510 000 in 2023.
REQUIRED:
Provide the accounting journal entries to account for the changes in the value of the land in 2022 and 2023.
Step by Step Solution
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Step: 1
Journal Entries 2022 Impairment loss 50000 Land 50000 To record impairment loss on land for the ye...
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
