Sparkling Company Uses IFRS

question 104

Multiple Choice

Sparkling Company uses IFRS. After 3 full years of use, the Sparkling Company revalues equipment with a carrying value of $990,000 to its fair value of $1,400,000 using the accumulated depreciation elimination method. The original cost of the equipment is $1,300,000 and the equipment has a useful life of 10 years with no scrap value. Sparkling Company depreciates under the straight-line method. How much is the revaluation gain or loss? Where does Sparkling Company report any unrealized gain or loss from the revaluation in the financial statements?

• A) $410,000 unrealized gain in continuing operations of statement of comprehensive income
• B) $310,000 unrealized gain in continuing operations of statement of comprehensive income
• C) $410,000 unrealized gain in revaluation surplus reported in other comprehensive income in statement of comprehensive income
• D) $310,000 recovery of unrealized loss reported in other comprehensive income in statement of comprehensive income

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Definitions:

Shared Models

Pertains to the common understanding or frameworks that members of a group or organization hold, allowing for coordinated actions and decisions.

Team Members

Individuals who are part of a group collaborating towards a common goal or project.

Cross-functional Teams

Teams composed of members from diverse functional areas within an organization, working together towards a common goal.

Training

The process of teaching or acquiring skills, knowledge, or competencies as a result of the teaching of vocational or practical skills and knowledge.