Question 1

**Section A**

AgriCorp owns a specialized automated harvester purchased for $200,000 on 1 January 20X1, with a 10-year useful life and nil residual value. On 31 December 20X3, AgriCorp adopts the revaluation model. The harvester's fair value is assessed at $168,000. What is the revaluation surplus recorded in Other Comprehensive Income on 31 December 20X3?

Accepted Answer

Calculate the carrying amount at the date of revaluation (Cost - Accumulated Depreciation). Then subtract this carrying amount from the new fair value.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Miscounting the number of years of depreciation (e.g., using 2 or 4 years instead of 3).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FR — Financial Reporting Practice Exam 2

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