Armement Kerlouan applies the revaluation model for the first time to a transferable individual fishing quota, amortised over its finite useful life. The quota cost 240,000 and its accumulated amortisation amounts to 60,000. The active market values it at 150,000. The entity eliminates the accumulated amortisation against the gross carrying amount. The whole class of fishing quotas to which this asset belongs, traded on that active market, is revalued at the same date. Ignore deferred tax effects. Record the revaluation entry.
- Cost of the quota
- 240,000
- Accumulated amortisation
- 60,000
- Fair value by reference to the active market
- 150,000