Reference no: EM133147115
Questions -
Q1. The ABC Company accounts for non-current assets using the revaluation model. on June 30,2020,ABC classified a freehold property as held for sale in accordance with PFRS 5. At that date, the property carrying amount was P290,000 and the balance on the revaluation reserve wasP20,000. At that date, its fair value was estimated at P330,000 and the costs to sell at P20,000.At December 31, 2020 the property's fair value was estimated at P325,000 and the costs to sell at P25,000.The asset should be carried in ABC's statement of financial position at December 31, 2020 at
1. P325,000
2. P310,000
3. P300,000
4. P290,000
Q2. The XYZ Company accounts for non-current assets using the revaluation model. on June 30,2020, XYZ classified a freehold property as held for sale in accordance with PFRS 5. At that date, the property carrying amount was P290,000 and the balance on the revaluation reserve wasP20,000. At that date, its fair value was estimated at P330,000 and the costs to sell at P20,000.At December 31, 2020 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 XYZ's profit or loss for the year ended December 31, 2020?
1. P30,000
2. P10,000
3. P5,000
4. Nil
Q3. The Mira Company accounts for non-current assets using the revaluation model. On June 30, 2020, Mira classified two items of non-current assets as held for sale in accordance with PFRS 5. The following information relates to these assets:
|
|
Asset 1
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Asset 2
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|
Carrying amount before classification as held for sale
|
P400,000
|
P300,000
|
|
Revaluation surplus before classification as held for sale
|
60,000
|
30,000
|
|
Fair value, June 30, 2020
|
450,000
|
260,000
|
|
Estimated cost to sell
|
20,000
|
12,000
|
Required - Find the total expense to be recognized in profit or loss related to these assets?