Question
Coronado Company uses IFRS and owns property, plant and equipment with a historical cost of 5310000...
Coronado Company uses IFRS and owns property, plant and equipment with a historical cost of 5310000 euros. At December 31, 2019, the company reported a valuation reserve of 8620000 euros. At December 31, 2020, the property, plant and equipment was appraised at 5550000 euros.
The property, plant and equipment will be reported on the December 31, 2020 statement of financial position at
Answers
Under IFRS, property, plant and equipment will be reported in statement of financial position at the appraised value (fair value). The valuation reserve will be decreased by the amount of increase in appraised value. The property, plant and equipment will be reported at 5550000 euros.
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