IAS 16: revaluation

Learning objectives

• Analyse how IFRS 13 fair value feeds the IAS 16 revaluation model without determining the choice of model.L3
• Calculate the accounting for a revaluation based on a fair value determined in accordance with IFRS 13.L3

Normative references

• IFRS 13 §9Definition: the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
• IFRS 13 §27For a non-financial asset, the measurement takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use it in that way.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

3 questions

• A group has chosen the revaluation model of IAS 16 for its land. What is IFRS 13's part in measuring a revalued piece of land?L3
• A piece of land is carried at {carrying_amount}. At the revaluation date (IAS 16 revaluation model), its fair value determined under IFRS 13 is {fair_value_ifrs13}. A decrease of {previous_decrease_in_pl} on the same land had been recognised in profit or loss at an earlier revaluation. What amount is recognised in other comprehensive income?L3
• A controller reads a group's note on the revaluation of its operating buildings. Which of these statements is wrong?L3