Taxis Bellerive apply the revaluation model for the first time to a taxi licence traded on an active market. This licence, bought for 300,000, is amortised: its accumulated amortisation reaches 90,000, while the market values it at 250,000. Bellerive eliminates the accumulated amortisation against the gross carrying amount. The licence has never suffered a decrease. The whole class of taxi licences to which this asset belongs, traded on that active market, is revalued at the same date. Ignore deferred tax effects. Record the single revaluation entry.
- Gross carrying amount of the licence
- 300,000
- Accumulated amortisation
- 90,000
- Fair value by reference to the active market
- 250,000