Ondaris holds production quotas traded in an active market, acquired for 400,000 and amortised on a straight-line basis over 10 years, with no residual value. It applies the revaluation model. After 2 years of amortisation, it revalues the quotas at 480,000; the remaining useful life is unchanged. Under its accounting policy, Ondaris transfers each year to retained earnings the part of the revaluation surplus realised through the use of the asset. For the year following the revaluation, calculate the amortisation based on the revalued amount, the amortisation that would have been based on historical cost and the amount transferred. Deferred tax is ignored.
- Acquisition cost of the quotas
- 400,000
- Total useful life (years)
- 10
- Years elapsed at the revaluation date
- 2
- Revalued amount
- 480,000