On 1 January 2019, Tim Ltd decided that a building was to be revalued to 3,500,000. The

current valuation in the statement of financial position was 2,000,000. Tim Ltds year end is

31 December 2019.

Describe how you would record the increase in value for the building and explain why this

is not considered to be profit. Using the information for Tim Ltd you can prepare extracts

from the relevant financial statements to illustrate your point.