Revaluation model for reporting its long-term assets


On December 31, Year 1, an entity adopted the IFRS revaluation model for reporting its long-term assets and revalued a patent with a carrying value of $85,000 and a 10 year life to its fair value of $75,000. On December 31, Year 2, before recording any amortization, the entity determined t hat the patent had a fair value of $90,000. In its December 31, Year 2 financial statements, the entity will report a revaluation gain of:

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Accounting Basics: Revaluation model for reporting its long-term assets
Reference No:- TGS069979

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