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London Company owns a building on January 1, 2020, with a historical cost of P40,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopts the revaluation model of measuring property, plant, and equipment. The building has so far been revalued twice at fair value as follows: January 1, 2021 P 46,800,000 January 1, 2023 P 55,500,000 Requirements: 1. What is the revaluation surplus on January 1, 2021? 2. What is the increase in revaluation surplus to be recognized as a component of other comprehensive income on January 1, 2023?

London Company owns a building on January 1, 2020, with a historical cost of P40,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopts the revaluation model of measuring property, plant, and equipment. The building has so far been revalued twice at fair value as follows: January 1, 2021 P 46,800,000 January 1, 2023 P 55,500,000 Requirements: 1. What is the revaluation surplus on January 1, 2021? 2. What is the increase in revaluation surplus to be recognized as a component of other comprehensive income on January 1, 2023?

FINANCIAL ACCOUNTING
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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London Company owns a building on January 1, 2020, with a historical cost of P40,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopts the revaluation model of measuring property, plant, and equipment. The building has so far been revalued twice at fair value as follows:
January 1, 2021 P 46,800,000
January 1, 2023 P 55,500,000

Requirements:
1. What is the revaluation surplus on January 1, 2021?

2. What is the increase in revaluation surplus to be recognized as a component of other comprehensive income on January 1, 2023?

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