Acca financial Accounting (FA) Study Text ac ca (FA)

Show the ledger entries for the year ended 31 December 20X5 to 

reflect this transaction.

 

 

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Chapter 8 

KAPLAN PUBLISHING

 

147 

3 

Revaluation of non-current assets 

So far, the focus has been upon accounting for the cost of an item of property, 

plant and equipment, and the associated requirement to account for 

depreciation. 

According to IAS 16, items of property, plant and equipment can be measured 

and accounted for using the revaluation model. Some non-current assets, such 

as land and buildings may rise in value over time. A company (rather than sole 

traders and partnerships) may choose to reflect the value of the asset in its 

statement of financial position. This is known as revaluing the asset. 

IAS 16 says that