How is the revaluation of an investment property treated differently from the revaluation of an item...

How is the revaluation of an investment property treated differently from the revaluation of an item of property, plant and equipment?

Expert Solution

	Answer

1	The big difference is where there is a gain in the value of an asset
2	If it’s an investment property, that gain will go through profit or loss whereas if it’s a gain for a non-investment asset held under the valuation model the gain will be credited to a revaluation reserve.
3	Treatment of losses – investment property the loss goes to profit or loss
4	If it’s a non-investment property held under the valuation model the loss goes initially against earlier surpluses still in revaluation reserve and then any excess is expensed through profit or loss.
5	Depreciation is different.
6	Treatment of gains is different (as I have just pointed out).
7	Treatment of losses is also different (again, as I have just pointed out)
8	Different from revaluation model used for PPE. In revaluation model, if fair value is more than historical cost, no gain is reported in income statement.
	For investment property, the gain is recorded in the income statement and there is no revaluation surplus account.

ekkarill92 answered 3 years ago

please explain how from birth boys and girls are often treated differently, first in how they...

please explain how from birth boys and girls are often treated differently, first in how they are dressed, parent-child interactions and the toys they are provided. Although historically treating boys and girls differently may have been helpful in directing them towards their traditional roles, considering many women are now becoming single mothers and both men and women are desiring a larger choice in jobs, not necessarily the gender stereotypical jobs, can you please discuss how this childhood socialization may not...

please explain how from birth boys and girls are often treated differently, first in how they...

please explain how from birth boys and girls are often treated differently, first in how they are dressed, parent-child interactions and the toys they are provided. Although historically treating boys and girls differently may have been helpful in directing them towards their traditional roles, considering many women are now becoming single mothers and both men and women are desiring a larger choice in jobs, not necessarily the gender stereotypical jobs, can you please discuss how this childhood socialization may not...

Some items are treated differently for accounting purposes than they are for tax purposes. For the following item: Es

Some items are treated differently for accounting purposes than they are for tax purposes. For the following item: Estimated future warranty costs, indicate whether it is considered a permanent difference or a temporary difference. For a temporary difference, indicate whether it will create a deferred tax asset or a deferred tax liability.

how is sludge treated differently in water treatment vs wastewater treatment?

Define subsequent events. What different kinds of subsequent events are there? How are they treated differently?...

Define subsequent events. What different kinds of subsequent events are there? How are they treated differently? Why are they treated differently and why does this make sense? With these answers in mind, discuss when an auditor's job is really finished. How does (or should) this affect the acceptance of a client in the first place.

Explain why capital assets are treated differently in financial management and budgeting. How are these differences...

Explain why capital assets are treated differently in financial management and budgeting. How are these differences accommodated into budgetary and financial management practices?

Indicate which of the following are treated by intellectual property law. Treated by intellectual property law...

Indicate which of the following are treated by intellectual property law. Treated by intellectual property law Not treated by intellectual property law Answer Bank; trade secrets, copy rights , patents . control of physical resources, trade marks , deregulation

Prior to 1970, maternity was usually treated differently from other medical expenses, either excluded entirely from...

Prior to 1970, maternity was usually treated differently from other medical expenses, either excluded entirely from coverage or subject to a ﬂat lump-sum cash (indemnity) beneﬁt. Why? During the 1970s, 23 states mandated that treatment related to pregnancy be covered the same as any other type of treatment, and in 1978, such coverage became uniform throughout the United States. Would mandated maternity beneﬁts make working in a salaried position more or less attractive to women? Would it make women of...

explain how during elementary and middle school, boys and girls may be treated differently by teachers,...

explain how during elementary and middle school, boys and girls may be treated differently by teachers, affected by educational materials, experience cooperative learning techniques either in a positive or negative sense , and other wise experience differences. Explain the impact that these types of differential treatment can have on the two genders; both in a negative and positive sense. Do you remember anything from your elementary or middle school days that you believe impacted you in a positive or negative...

Which of the following ratios is NOT affected by a revaluation of property, plant and equipment? ...

Which of the following ratios is NOT affected by a revaluation of property, plant and equipment? Select one: a. Quick ratio. b. Asset turnover. c. Comprehensive income / equity. d. Debt to equity. e. Earnings before interest tax / interest.

Question

How is the revaluation of an investment property treated differently from the revaluation of an item...

Solutions

Expert Solution

Related Solutions

please explain how from birth boys and girls are often treated differently, first in how they...

please explain how from birth boys and girls are often treated differently, first in how they...

Some items are treated differently for accounting purposes than they are for tax purposes. For the following item: Es

how is sludge treated differently in water treatment vs wastewater treatment?

Define subsequent events. What different kinds of subsequent events are there? How are they treated differently?...

Explain why capital assets are treated differently in financial management and budgeting. How are these differences...

Indicate which of the following are treated by intellectual property law. Treated by intellectual property law...

Prior to 1970, maternity was usually treated differently from other medical expenses, either excluded entirely from...

explain how during elementary and middle school, boys and girls may be treated differently by teachers,...

Which of the following ratios is NOT affected by a revaluation of property, plant and equipment? ...