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Question - Khenpo Ltd purchased a building on 1 January 2021 for $300,000. An independent valuation reveals that the same building would have cost $340,000 as at 30 June 2021. According to the current value measurement basis as provided in the Conceptual Framework, how should Khenpo Ltd recognise the building in its financial statements for the year ended 30 June 2021?
300,000 recognised as an asset and $40,000 as a liability
300,000 recognised as an asset
340,000 recognised as an asset
The equipment should not be recognised as all as it cannot be reliably measured
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