Hello everyone! I am new to the forum, so please excuse me if I am posting this question in the wrong topic!
I have a question about the usage of the Revaluation Method. Can anyone help with solving the following question:
On 01.05.17 a company buys a machine for 5,100,000€. The following further costs were incurred:
Delivery: 25,000; Installation: 35,000€; Training Costs: 10,000€; Administration Costs: 20,000€.
The machine has an estimated useful life of 5 Years and a residual value of 0€. The machine is ready for use on 1.July.2017.
a) determine the carrying amount upon recognition
b) The company decides to apply the revaluation model for subsequent measurement. The fair value of the machine develops as follows:
31.12.2017 - 4,950,000€
31.12.2018 - 3,570,000€
31.12.2019 - 2,300,000€
31.12.2020 - 1,500,000€
Determine the carrying amount of the machine at the end of the years 17,18,19,20 and the amounts of any possible realuation gains or losses shown in P&L and the amount shown in the OCI.
PS: I do solve the quetion, but am not sure with the Values I have written down for P/L, OCI and G&L. I work with Carrying Amount of 5,180,000€
I have a question about the usage of the Revaluation Method. Can anyone help with solving the following question:
On 01.05.17 a company buys a machine for 5,100,000€. The following further costs were incurred:
Delivery: 25,000; Installation: 35,000€; Training Costs: 10,000€; Administration Costs: 20,000€.
The machine has an estimated useful life of 5 Years and a residual value of 0€. The machine is ready for use on 1.July.2017.
a) determine the carrying amount upon recognition
b) The company decides to apply the revaluation model for subsequent measurement. The fair value of the machine develops as follows:
31.12.2017 - 4,950,000€
31.12.2018 - 3,570,000€
31.12.2019 - 2,300,000€
31.12.2020 - 1,500,000€
Determine the carrying amount of the machine at the end of the years 17,18,19,20 and the amounts of any possible realuation gains or losses shown in P&L and the amount shown in the OCI.
PS: I do solve the quetion, but am not sure with the Values I have written down for P/L, OCI and G&L. I work with Carrying Amount of 5,180,000€
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