Question

TOKI PJSC owns two pieces of land in Dubai. Land A was purchased in 2013 at a cost of Dh10 million while Land B was purchased in 2014 at a cost of Dh12 million. The lands were classified as fixed assets, and were revalued as follows:

	Open market value
	Land A	Land B
Years revalued	Dh million	Dh million
2015	8	16
2017	12	11
2019	11	14

Required:

At each valuation date, calculate the surplus or deficit arising on the revaluation of both lands, respectively.

Answer 1

Particulars/ Year		Land A		Land B
2013		10,000,000		-
2014				12,000,000
2015
Cost in Year 2015		10,000,000		12,000,000
Revalued in Year 2015		8,000,000		16,000,000
Surplus/(Deficit)		(2,000,000)		4,000,000
2017
Cost in Year 2017		8,000,000		16,000,000
Revalued in Year 2017		12,000,000		11,000,000
Surplus/(Deficit)		4,000,000		(5,000,000)
2019
Cost in Year 2019		12,000,000		11,000,000
Revalued in Year 2019		11,000,000		14,000,000
Surplus/(Deficit)		(1,000,000)		3,000,000