[awdal26]

Ballec PLC the year ending 31 December 2012

Building X and building Y were both purchased 5 years ago for £1m each and were estimated to have useful lives of 50 years at acquisition. Building X is used in the business of Balance plc whereas building Y is an investment property. Balance uses the fair value method as allowed by IAS40 to value investment properties.

As at 31 December 2011 both buildings were valued at £2m each and these valuations were reflected in the accounts for that year. Remaining useful lives of both buildings were revised to 50 years at that date.

At 31 December 2012 both buildings were valued at £2.5m each. These valuations are to be reflected in the accounts.

Balance plc provides depreciation on a straight line basis charging one month depreciation for each complete month of ownership.

How should I account the final revaluation and transferring the excess depreciation .

[paraclete]

I think we have seen this question previously