The Verba Company accounts for non-current assets using the revaluation model. On 30 June 2020, Verba 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. At 31 December 2020 the property's fair value was estimated at P325,000 and the costs to sell at P25,000.
The Verba Company accounts for non-current assets using the revaluation model. On 30 June 2020, Verba 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. At 31 December 2020 the property's fair value was estimated at P325,000 and the costs to sell at P25,000.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
Related questions
Question
The Verba Company accounts for non-current assets using the revaluation model. On 30 June 2020, Verba 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. At 31 December 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 Verba's profit or loss for the year ended 31 December 2020?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT