Accounting · IFRS 5 Non-current Assets Held for Sale and IAS 16 Revaluation
On 30 June 20X6, Mid Co's management approved a plan to sell an owner-occupied property and it met the criteria to be classified as held for sale. The property is measured using the revaluation model and its carrying amount on 30 June 20X6 was $800,000. The property's fair value at this date was $900,000 and costs to sell were estimated at 2% of selling price. Which statement correctly reflects the accounting entries (if any) at 30 June 20X6?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A gain of $82,000 is recognised in profit or loss
- 2A gain of $100,000 is recognised in other comprehensive income and a loss of $18,000 is recognised in profit or loss✓
- 3No accounting entries are required
- 4A net gain of $82,000 is recognised in other comprehensive income
Correct answer
A gain of $100,000 is recognised in other comprehensive income and a loss of $18,000 is recognised in profit or loss
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