The functional and presentation currency Melody Inc. is used to be Singapore dollar. In Hong Kong, it has a property held for rental purpose of HK$10 million. Melody considers revaluating its property in Hong Kong for financial reporting purpose and ceases to lease out the property. At acquisition of the property, the cost was HK$10 million and the exchange rate was S$1 to HK$5. At year end, the fair value of the property was HK$15 million exchange rate was S$1 to HK$6. The director, Melody Tong, asks whether the classification of property as investment property or property, plant and equipment would have impact on the translation of the revalued property.

REQUIRED:

a. Assuming the property is an investment property, calculate the carrying amount of the property at year end in the statement of financial position and suggest the journal entries.

b. Assuming the property is an item of property, plant and equipment, calculate the carrying amount of the property at year end in the statement of financial position and suggest the journal entries.