ABC Adheres to IFRS and Applies the Revaluation Model to Account

question 148

Essay

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: $\begin{array} { | l | l | l | l | } \hline & \text { Cost } & \text { Accumulated Depreciation } & \text { Fair Value } \\\hline 2009 & \$ 180 & 10 & \$ 120 \\\hline 2010 & \$ 180 & 20 & \$ 125 \\\hline 2011 & \$ 180 & 30 & \$ 130 \\\hline\end{array}$ 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:

Ultimate Concern

This term refers to a concept in existentialism and philosophy that highlights the most important or fundamental issue or value to an individual.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, often considered in terms of its effects on the organism or activity.

Umwelt

Refers to the world as it is experienced by a particular organism.

Meaninglessness

Describes a state or condition of lacking significance, purpose, or value.