At 31 December 20X2, Armement Kerdual revalues for the first time a transferable fishing licence acquired for 400,000, whose accumulated amortisation amounts to 160,000. Its fair value, measured by reference to an active market, is 300,000. The entity eliminates the accumulated amortisation against the gross carrying amount of the asset. No decrease in value has previously been recognised. The whole class of fishing licences to which this asset belongs, traded on that active market, is revalued at the same date. Ignore deferred tax effects. Calculate the revaluation surplus recognised in other comprehensive income and the gross carrying amount of the licence after revaluation.
- Acquisition cost of the licence
- 400,000
- Accumulated amortisation before revaluation
- 160,000
- Fair value by reference to the active market
- 300,000