A company has decided to use the revaluation model to account for one of its buildings. There is only one building in the asset class:
The building cost is $1 million and is being depreciated on a straight-line basis over its estimated useful life of 20 years.
In year 4, the building is revaluated at $600,000.
In year 7, the building is revalued at $700,000.
What is the revaluation gain/loss recognised in profit/loss in year 7?
The building cost is $1 million and is being depreciated on a straight-line basis over its estimated useful life of 20 years.
In year 4, the building is revaluated at $600,000.
In year 7, the building is revalued at $700,000.
What is the revaluation gain/loss recognised in profit/loss in year 7?