Unit 2 - Illustration on Transfers

Unit 2 - Illustration on Transfers - I.P. Given: account...

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CM 20252 – Unit 2 Investment Properties (HKAS 40) Illustration I : Transfer under the Fair Value Model I.P. P.P.E. or inventory Given: account balance of I.P. is $80 and its fair value on date of transfer is $100 Dr P.P.E. or inventory $100 Cr I.P. $80 Cr Fair value change on transfer (P&L) $20 P.P.E. I.P. Given: account balance of P.P.E. is $140, and account balance of accumulated depreciation is $20. Fair value of the property is $150 on the date of transfer. Dr I.P. $150 Dr Acc. Dep. $20 Cr P.P.E. $140 Cr Revaluation surplus $30 Dr Revaluation surplus $30 Cr Retained earnings $30 (realization of revaluation surplus upon retirement or derecognition of P.P.E.) Inventory I.P. Given: account balance of inventory is $120. Fair value of the property is $150 on the date of transfer. Dr I.P. $150 Cr Fair value change on transfer (P&L) $30 Cr Inventory $120 Self-constructed property
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Unformatted text preview: I.P. Given: account balance of the self-constructed property is $120. Fair value of the property is $100 on the date of transfer. Dr I.P. $100 Dr Fair value change on transfer (P&L) $20 Cr PPE under construction $120 1 Illustration II : Transfer under the Cost Model I.P. P.P.E. or inventory Given: account balance of I.P. is $120, and account balance of accumulated depreciation is $20. Dr P.P.E. or inventory $100 Dr Acc. Dep $20 Cr I.P. $120 P.P.E. I.P. Given: account balance of P.P.E. is $140, and balance of accumulated depreciation is $20. Dr I.P. $120 Dr Acc. Dep. $20 Cr P.P.E. $140 Inventory I.P. Given: account balance of inventory is $120. Dr I.P. $120 Cr Inventory $120 Self-constructed property I.P. Given: account balance of the self-constructed property is $120. Dr I.P. $120 Cr PPE under construction $120 2...
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Unit 2 - Illustration on Transfers - I.P. Given: account...

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