Synergy Ltd

question 39

Multiple Choice

Synergy Ltd. purchased a building in 2008 for €20,000,000 and as of December 31, 2014 had recorded accumulated depreciation on the building of €6,000,000. On December 31, 2014, the company conducted its first revaluation when the fair value was €24,000,000. Under IAS 16, the journal entry recorded on this date would include:

• A) a credit to Revaluation Surplus-Building for €10,000,000.
• B) a debit to Revaluation Surplus-Building for €14,000,000.
• C) a debit to Loss on Revaluation-Building for €14,000,000.
• D) a credit to Loss on Revaluation-Building for €10,000,000.

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Definitions:

Priority

The order of importance or urgency assigned to something, which often determines the sequence in which tasks or responsibilities are addressed.

Attachment

The legal process of seizing a debtor's property to secure or satisfy a judgment.

Remedy

The means by which a right is enforced or the violation of a right is prevented, compensated, or corrected in law.

Secured Creditors

Creditors who have a legal right to seize collateral if the borrower defaults on the loan associated with that collateral.