On January 2, 2019, Jillian Company made a test of impairment on one of its buildings carried as plant asset. The test on impairment revealed a recoverable value of P5,500,000 on that building. The carrying value of this building as of January 2, 2019 is P8,000,000 with a remaining useful life of 10 years. On January 1, 2021, Jillian Company decided to convert this building into an investment property that is to be carried at fair value. The cost of converting the building is insignificant but as a result of the change in the usage, the fair market value of the building was reliably valued at P7,000,000. What amount of revaluation surplus should Jillian Company disclose in the shareholders’ equity as of December 31, 2021?
On January 2, 2019, Jillian Company made a test of impairment on one of its buildings carried as plant
asset. The test on impairment revealed a recoverable value of P5,500,000 on that building. The carrying
value of this building as of January 2, 2019 is P8,000,000 with a remaining useful life of 10 years.
On January 1, 2021, Jillian Company decided to convert this building into an investment property that is
to be carried at fair value. The cost of converting the building is insignificant but as a result of the change in the usage, the fair market value of the building was reliably valued at P7,000,000. What amount of
revaluation surplus should Jillian Company disclose in the shareholders’ equity as of December 31, 2021?
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