Question
Question 22. Public entity Y acquired a property in 20X0 for a cost of $10 million. Y has adopted the allowable alternative included within IPSAS
Question 22. Public entity Y acquired a property in 20X0 for a cost of $10 million. Y has adopted the allowable alternative included within IPSAS 17 'Property, Plant & Equipment', and revalues all of its property annually. On 15 December 20X1 Y enters into a binding sale agreement and title to the property passes to Medical Inc. for cash consideration of $25 million. The consideration is payable in March 20X2. The carrying value of the property at 15 December 20X1 was 22 million.
What amount, calculated in accordance with IPSAS 17, should be reported in surplus/deficit for Y for the years ending 31 December 20X1 and 31 December 20X2 in respect of the disposal?
20X1 = Nil, 20X2 = $3 million
20X1 = $3 million, 20X2 = $12 million
20X1 = $3 million, 20X2 = $Nil
20X1 = $15 million, 20X2 = $Nil
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