Revaluation of land – without taking deferred tax into account
On Jan 01, 01, entity E acquires land for CU 40. Payment is effected in cash on the same day. The piece of land is measured according to the revaluation model after recognition. Revaluations are carried out on an annual basis. Fair value of the land changes as follows:
|
Dec 31, 01 |
44 |
|
Dec 31, 02 |
36 |
|
Dec 31, 03 |
48 |
Required
Prepare any necessary entries in E”s financial statements as on Dec 31 for the years 01–03. Ignore deferred tax.