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IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June 30,...

IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June 30, 2016, IceCap purchased land for €3,000,000. IceCap reports land values on the balance sheet under Property, plant, and equipment. The appraisal value for the land (which you can assume is the same as the recoverable amount) was reported as:

Appraisal Date Land Value
12/31/2016 € 3,150,000
12/31/2017 € 2,750,000
12/31/2018 € 2,850,000

Required:

  1. Prepare the journal entries at the end of 2016, 2017, and 2018 to record any changes in value to this land asset if IceCap chooses the IFRS cost model to value this property.
  2. Prepare the journal entries at the end of 2016, 2017, and 2018 to record any changes in value to this land asset if IceCap chooses the IFRS revaluation model to value this property.

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Expert Solution

ekkarill92 answered 10 months ago
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