White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. On June 30, 20X0, White purchased land for €3,000,000. White reports land values on the balance sheet under Property, plant, and equipment. The appraisal value for the land (which you can assume is the same as the recoverable amount) was reported as:
Appraisal Date ……… Land Value
12/31/20X0 …………… €3,150,000
12/31/20X1 …………… €2,750,000
12/31/20X2 …………… €2,850,000
Required:
1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS cost model to value this property.
2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS revaluation model to value this property.
