Save-the-Rhino purchased land on 1 July 2017 at a cost of N$300 000. The company applies the revaluation model to land and assessments of fair value take place every two years.
On 31 December 2019 the land was revalued to its fair value of N$350 000. On 31 December 2021 the land was revalued again to its fair value of N$400 000. On 31 December 2023 the land had a value in use of N$270 000 and a fair value less costs of disposal of N$285 000, where the costs to sell were negligible.
The fair value adjustment for the year ended 31 December 2023 is disclosed as follow:

Question

Save-the-Rhino purchased land on 1 July 2017 at a cost of N$300 000. The company applies the revaluation model to land and assessments of fair value take place every two years.

On 31 December 2019 the land was revalued to its fair value of N$350 000. On 31 December 2021 the land was revalued again to its fair value of N$400 000. On 31 December 2023 the land had a value in use of N$270 000 and a fair value less costs of disposal of N$285 000, where the costs to sell were negligible.

The fair value adjustment for the year ended 31 December 2023 is disclosed as follow:

Answer

N$100 000 as decrease in other comprehensive income and N$15 000 as an impairment loss expense in profit or loss.

Answer

N$50 000 as decrease in other comprehensive income and N$80 000 as an expense in profit or loss.

Answer

N$100 000 as decrease in other comprehensive income and N$15 000 as a revaluation expense in profit or loss.

Answer

N$50 000 as decrease in other comprehensive income and N$65 000 as an expense in profit or loss.

Answer

N$115 000 as an expense in profit or loss

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Save-the-Rhino purchased land on 1 July 2017 at a cost of N$300 000. The company...

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