On $1$ January $2020$ the company purchased a new

building at a cost of R$100000$ and this building is

well classified as Property, plant and equipment in

terms of IAS $16.$

The useful life of the building is $50$ years and a nil

residual value. The company chose to measure the

building using the cost model and the following

information applies:

At the end of the year $2022$ the building had a

recoverable amount of R$94000.$

The building was the rented out to a tent on $1$ July

$2023$ and the building was classified as the

investment property on that date.

The building was measured using the Fair Value

Model under IAS $40$ Investment Property, and the

following fair values were obtained:

$1$ July $2023$ R$98000$

$31$ December $2023$ R$102000$

What will be the adjustment be in the year ended

$2023$ and $2022$:

a$.2022=$ Impairment Loss of R$2000$; $2023$

$=$ Revaluation Surplus R$4958$; Fair Value

Adjustment R$4000$

b$.2022=$ Impairment Loss of R$2000$; $2023$

$=$ Revaluation Surplus R$5948$; Fair Value

Adjustment R$4000$

c$.2022=$ Impairment Loss of R$4000$; $2023$

$=$ Revaluation Surplus R$4958$; Fair Value

Adjustment $2000$