Suppose a company using IFRS acquires the ownership rights to a celebrity photograph on December 1, 2014, for $ 530. The company accounts for these rights under the revaluation model. Assume the fair value at relevant dates is as follows. December 1, 2014 $530 December 31, 2014 $550 December 31, 2015 $520 December 31, 2016 $510 December 31, 2017 $565 What are the balances in revaluation surplus at the end of each year? How much revaluation is recognized through OCI each year? How much revaluation is recognized in income each year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Suppose a company using IFRS acquires the ownership rights to a celebrity photograph on December 1, 2014, for $
530. The company accounts for these rights under the revaluation model. Assume the fair value at relevant dates is as
follows. December 1, 2014 $530 December 31, 2014 $550 December 31, 2015 $520 December 31, 2016 $510
December 31, 2017 $565 What are the balances in revaluation surplus at the end of each year? How much revaluation is
recognized through OCI each year? How much revaluation is recognized in income each year?
Transcribed Image Text:Suppose a company using IFRS acquires the ownership rights to a celebrity photograph on December 1, 2014, for $ 530. The company accounts for these rights under the revaluation model. Assume the fair value at relevant dates is as follows. December 1, 2014 $530 December 31, 2014 $550 December 31, 2015 $520 December 31, 2016 $510 December 31, 2017 $565 What are the balances in revaluation surplus at the end of each year? How much revaluation is recognized through OCI each year? How much revaluation is recognized in income each year?
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