Professional Documents
Culture Documents
Land Securities
Land Securities
Land Securities
Particular
Dr
Revaluation Model Cr Balance sheet Cash goes down and Buildings go 100000 up 100000 Asset value increase and is taken directly to revaluation reserve 30000 20000 20000 60000
12/31/2006 Asset(Building)
30000
Revaluation Reserve
12/31/2007 Asset(Building)
Revaluation Reserve
12/31/2008 Asset
10000 50000
Cost Model Cr Balance sheet Cash goes down and Buildings go 100000 up 100000 Depreciation is reflected in B/S. Net book value of building is now 10000 90k. Depreciation is reflected in B/S. Net book value of building is now 10000 80k. Net book value of asset reduced to 10000 50K Depreciation rises by 10k and 20000 impairment is doen for 20k
Date
Particular
Dr
10000
10000
Date 1/1/2006
Dr
Fair Value Model Cr Balance sheet Cash goes down and Buildings go up 100000 Asset value increases and is balanced by increase in Retained Earning 30000
100000
30000
Asset value decreases by 20k. This is balanced by decrease in Retained earning due to unrealized holding loss
No Effect
No Effect
Income Statement No Effect Depreciation amount is reported as expense on I/S. Depreciation amount is reported as expense on I/S.