Victor Ltd owns two blocks of commercial land acquired in 20X1 for the purposes of future development. Block M cost $400,000 and Block N cost $300,000.

Valuations of the blocks are undertaken by an independent valuer on 30 June 20X3 and 30 June 20X5. The assessed values are:

	20X3 valuation	20X5 valuation
Block M	$430,000	$455,000
Block N	$272,000	$329,000

Required:

1. Assuming asset revaluations were undertaken for the land in both 20X3 and 20X5, provide the journal entries for both years. (10 marks)
2. If a reporting entity elects to use either cost or fair value as the basis for measuring its property, plant and equipment, can it elect to switch to the other method at a later time? (2 marks)