Question
A building has original cost $500,000 and accumulated depreciation $140,000. Its fair value at the revaluation date is $430,000. Remaining useful life: 9 years. Residual value: $10,000. Assume no prior revaluation decrease requiring P&L recognition.
Required: Determine the carrying amount before revaluation, the revaluation surplus, and depreciation after revaluation.
Statements in this challenge
- Carrying Amount Before RevaluationNumeric Answer
- Revaluation SurplusNumeric Answer
- Depreciation After RevaluationNumeric Answer
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
How to approach this
IAS 1 — Presentation of Financial Statements
A composite challenge links several statements built from one set of data, so figures flow between them: profit reaches retained earnings, and the closing balances feed the position statement. Complete them in the order the statements depend on each other rather than the order of the tabs.
Common mistakes
- Preparing each statement independently, so the linking figures disagree.
- Carrying a figure forward before finishing the adjustments that change it.
- Reworking a linked figure in one statement without updating it in the others.
Further readingIAS 1: what goes where in a full set of statements