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The following information relates to three companies that use the revaluation model in relation to intangible assets and prepare annual financial statements to 31 December:
The following information relates to three companies that use the revaluation model in relation to intangible assets and prepare annual financial statements to 31 December: a) Company W acquired an intangible asset for 500,000 on 31 December 2018. This asset was revalued at 450,000 on 31 December 2019 and at 540,000 on 31 December 2020. b) Company X disposed of an intangible asset on 31 December 2020. This asset had been acquired some years previously at a cost of 200,000 and had a carrying amount of 320,000 on the date of disposal. Disposal proceeds were 390,000. c) Company Y acquired an intangible asset for 160,000 on 31 December 2018. This asset was revalued at 180,000 on 31 December 2019 and at 130,000 on 31 December 2020. Required 1 Explain how each of the above matters should be dealt with in the financial statements of the company concerned.
The following information relates to three companies that use the revaluation model in relation to intangible assets and prepare annual financial statements to 31 December:
a) Company W acquired an intangible asset for 500,000 on 31 December 2018. This asset was revalued at 450,000 on 31 December 2019 and at 540,000 on 31 December 2020.
b) Company X disposed of an intangible asset on 31 December 2020. This asset had been acquired some years previously at a cost of 200,000 and had a carrying amount of 320,000 on the date of disposal. Disposal proceeds were 390,000.
c) Company Y acquired an intangible asset for 160,000 on 31 December 2018. This asset was revalued at 180,000 on 31 December 2019 and at 130,000 on 31 December 2020.
Required
1 Explain how each of the above matters should be dealt with in the financial statements of the company concerned.
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