Beta LLC, in its accounting policy under IFRS for real estate, has provided for a subsequent revaluation method and has established a revaluation frequency for office buildings once every three years.
In January 20X0, Alpha acquired a new office for USD 700 million. The useful life for the purposes of IFRS and NAS is the same and is 20 years. The Company uses a straight-line depreciation method.
In September 20X2, Alpha hired professional appraisers. The fair value of this premises was USD730,000,000.
In January 20X3, for the revaluation, the company used the results of the revaluation carried out in September 20X2 due to the absence of significant fluctuations in office property prices.
Required:
You need to prepare a summary along with journal entries for transformational adjustment for the year-end December 31, 20X3:
Describe the main differences in the treatment of revaluation charges in NAS and IFRS
Calculate the amount of the adjustment needed to reflect the revaluation in accordance with IFRS.
Provide journal entries
