(Appendix) ABC Adheres to IFRS and Applies the Revaluation Model

question 114

Essay

(Appendix) ABC adheres to IFRS and applies the revaluation model to account for its Machinery.Prior to 2009,there was no balance in the company's Revaluation Surplus (OCI) accounts relating to its long-lived assets.The following year-end data pertains to the company's machinery: $$\begin{array} { l c c l } & \text { Cost } & \text { Accumulated Depreciation } & \text { Fair Value } \\2009 & \$ 180 & 10 & \$ 120 \\2010 & \$ 180 & 20 & \$ 125 \\2011 & \$ 180 & 30 & \$ 130\end{array}$$ Required:
For each year,provide the revaluation entries assuming that ABC applies:
a) The elimination method and,
b) The proportional method.

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Definitions:

Commencement

Commencement refers to the beginning or start of something, often used in legal contexts to denote the start of legal proceedings or the operative period of a contract.

Trustee

An individual or organization that holds or manages property or assets for the benefit of another party.

Chapter 11

Chapter 11 refers to a section of the United States Bankruptcy Code that permits reorganization under the bankruptcy laws of the United States.

Chapter 7

A provision under the US Bankruptcy Code for the process of liquidation, where a debtor's assets are sold to pay off creditors.