How much should be recognised within profit or for year

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On 1 August 2015 Charlie Plc, whose functional currency is the euro, bought a property in a foreign country for P40 million. The property had a 20-year useful economic life with no residual value estimated. On 31 July 2016 the property was revalued to P45 million.

Exchange rates were:

1 August 2015 N$1 = P 1.25

31 July 2016 N$1 = P 1.125

Under IAS 21-The Effects of Changes in

Problem 1: Foreign Exchange Rates and IAS 16 - Property, Plant & Equipment how much should be recognised within Profit or for year ended 31 July 2016?

Reference no: EM132910601

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