ABC company purchases a piece of land for £150,000 on 1st March 2012 and records it...

ABC company purchases a piece of land for £150,000 on 1st March 2012 and records it using the cost model. It has an expected useful life of 10 years.

At the end of 3^rd accounting year, the company decides to follow the revaluation model. At that date, the value of the asset is estimated to be £140,000.

At the end of the 4^th year there is a fall in the market value of the property and the value is estimated to be £89,000.

On 15^th May 2016 the asset is finally disposed off at a market value which is 10% lower than the then NBV.

How will the revaluation and disposal be accounted for in such a scenario? Year-end 31st Dec

Default policy charging in full depreciation in the year of acquisition and none in the year of disposal.

T-Accounts and Ledger Entries Requires

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