Question 12) On Jan 1, 2017, Nadia Company acquires land for AED 200,000. Payment is effected in cash on the same day. The piece of land is measured according to the revaluation model after recognition. Revaluations are carried out on an annual basis. Fair value of the land changes as follows:

Dec 31, 2017

AED 190,000

Dec 31, 2018

AED 180,000

Dec 31, 2019

AED 220,000

Required

A- Prepare any necessary entries in Nadias financial statements as on Dec 31 for the years 2017-2019. Ignore deferred tax. (8 marks)

B- In IAS 16 Property, Plant and Equipment IFRS give the option to the companies to select between cost method or revaluation method when present property, plant and equipment in the balance sheet, from your understanding of IAS 16, how applying revaluation method could enhance the financial statements reliability? (2 marks)