11-24. White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. On June 30, 20X0, White purchased land for €3,000,000. White reports land values on the balance sheet under Property, plant, and equipment. The appraisal value for the land (which you can assume is the same as the recoverable amount) was reported as: Appraisal Date Land Value 12/31/20X0 €3,150,000 12/31/20X1 €2,750,000 12/31/20X2 €2,850,000 Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS cost model to value this property. 2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS revaluation model to value this property.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11EB: The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining...
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11-24. White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. On June 30, 20X0, White purchased land for €3,000,000. White reports land values on the balance sheet under Property, plant, and equipment. The appraisal value for the land (which you can assume is the same as the recoverable amount) was reported as:

Appraisal Date Land Value

12/31/20X0 €3,150,000

12/31/20X1 €2,750,000

12/31/20X2 €2,850,000

Required:

1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS cost model to value this property.

2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS revaluation model to value this property.

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