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Question - On 30 June 2022, the statement of financial position of Emaar Ltd showed the following non-current assets after charging depreciation.
Building $600 000
Accumulated depreciation (200 000)
$400 000
The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $28 000. On 30 June 2022, an independent valuer assessed the fair value of the building to be $320 000.
Required -
Prepare any necessary entries to revalue the building as at 30 June 2022
Assume that the building had remaining useful lives of 25 years, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2023 using the straight-line method.
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