An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1Asset 2Carrying amount before classification as held for sale P400,000 P300,000Revaluation surplus before classification as held for sale 60,000 30,000Fair value, 30 June 2020450,000260,000Estimated costs to sell20,00012,000 The total expense to be recognized in profit or loss related to these assets is

As per PFRS 5, Non-current asset held for sale and discontinued operations, A non-current asset held…

Answered: An entity accounts for non-current…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets:

	Asset 1	Asset 2
Carrying amount before classification as held for sale	P400,000	P300,000
Revaluation surplus before classification as held for sale	60,000	30,000
Fair value, 30 June 2020	450,000	260,000
Estimated costs to sell	20,000	12,000

The total expense to be recognized in profit or loss related to these assets is

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