a company commissioned a valuation of its land


A company commissioned a valuation of its land and buildings for inclusion in its financial statements. The valuation document contained the following details:

                                           $m
 Reconstruction cost           10
 Open market valuation      14
 Existing use valuation       12
 Expected selling costs       0.2

The company's internal calculations indicate a value in use for the property of $16 million.

Requirement

Determine the value at which the property should be recognised in the financial statements if the company uses the revaluation model.

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Financial Management: a company commissioned a valuation of its land
Reference No:- TGS0211267

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