A company which prepares its financial statements
A company, which prepares its financial statements according to IFRS, owns several investment properties on which it earns rental income. It values the properties using the fair value model based on prevailing rental markets. A summary of the properties’ valuations is as follows:
Which of the following best describe the impact of the revaluation on the 2011 financial statements?
A.€6.5million charge to net income.
B.€6.5million charge to revaluation surplus.
C.€4.5million charge to revaluation surplus and €2.0 million charge to net income.
参考解答
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2024-11-15 00:52:06
Ans: A.
For investment properties, when using the fair value model of revaluing assets, all increases and decreases affect the net income. Here, it is 54.5 – 48.0 = 6.5.
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