Extracts from the statements of financial position of Wild Boar Ltd as at 30 June 2017...

Answer Page No 0 0 Journal entries related to the revaluation of Land and u w Credit Date machine on dec 31, 2016 Debit Particular Land C200,000 -100,000) $100,000 Revaluation reserve dec 31, 2016 $100,000 dec 31, Loms on revaluation of machinery $200 2016 Machinery (6000-800) $200 Fournal entry to record deferred taze arset & deberred tax liability Date Credit June 30, Particular Deferred tax asset Current tax Deferred tax liability Debit $ 60 $9340 2017 $2400 3 Journal entry to record downward revaluation of land bate Credit Particular Revaluation resowe homs on revaluation of land hand Debit $100,000 $ 30,000 Idec 31, 2017 $120,000 4 OCCO As per the concept of accounting, treatment of revaluation increment "Do not - unting

NO ( Page. No anticipate profits but provide for all possible losses" Therefore, any gain on revaluation is credited to the Revaluation reserve instead credited to profit & loss w og account profite against any the opward revaluation has no effect on loss. Therefore, it does not have any tax treatment when an asset is valued downwards, accounting treatment of revaluation decrement, then it should be charged revaluation surplus to the extent that decrease doesn't exceed the amount held in revaluation Suonplus Any additional lors should be debited to a sepera te head loss on revaluation which is charged to profite lagde .. Down ward revaluation has an effect on profit a loss and it decreases tax burden.

Tournal entries Date Credit Debit $5035 dec 31, 2017 Particular Impairment loss alc To machinery: C 450-415) To equipment (48000-43000) Profit & los al To impairment loss ale $35 $ 5000 dec 31, $5035 2017 $5035