Reference no: EM132937375

Questions -

Q1) The Yellow Corp. accounts for non-current assets using the revaluation model. On 30 June 2021, Yellow Corp. classified a freehold property as held for sale in accordance with PFRS5. At that date the property's carrying amount was P290,000 and the balance on the revaluation reserve was P20,000. At that date, its fair value was estimated at P330,000 and the costs to sell at P20,000. On 31 December 2021, the property's fair value was estimated at P325,000 and the costs to sell at P25,000. What amount should be included as an impairment loss in Yellow Corp.'s statement of comprehensive income for the year ended 31 December 2021?

Q2) The Blue Corp. has a single investment property, which had original cost of P580,000 on January 1, 2018.  On December 31, 2020, its fair value was P600,000 and at December 31, 2021, it had a fair value of P590,000. On acquisition, the property had a useful life of 40 years. According to IAS 40 Investment Property, what should be the expense recognized in Blue Corp.'s profit or loss for the year ending December 31, 2021 under each of the fair value model and the cost model, respectively?