Question
A building has a carrying amount of $420,000 immediately before a revaluation. Its fair value at the revaluation date is $360,000. There is no existing revaluation surplus relating to this building.
Required: determine the amount of the revaluation decrease recognized in profit or loss.
Statements in this challenge
- Decrease in P&LNumeric 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