IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years 30, 2000, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance appraisal value for the hotel (which you can assume is the same as the recoverable amount) from the date of purchase. The company uses straight-line depreciation for its hotels. The was reported as: Appraisal Date 12/31/20X0 12/31/20X1 12/31/20X2 Hotel Value €2,200,000 €1,400,000 €1,700,000 P11-24 IFRS impairment and reval- uation (LO 11-10) Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap 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 hotel asset if IceCap chooses the IFRS revaluation model to value this property. AT&T c S S

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...
icon
Related questions
Question
IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June
sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years
30, 2000, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance
appraisal value for the hotel (which you can assume is the same as the recoverable amount)
from the date of purchase. The company uses straight-line depreciation for its hotels. The
was reported as:
Appraisal Date
12/31/20X0
12/31/20X1
12/31/20X2
Hotel Value
€2,200,000
€1,400,000
€1,700,000
P11-24
IFRS impairment and reval-
uation (LO 11-10)
Required:
1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in
value to this hotel asset if IceCap 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 hotel asset if IceCap chooses the IFRS revaluation model to value this property.
AT&T
c
S
S
Transcribed Image Text:IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years 30, 2000, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance appraisal value for the hotel (which you can assume is the same as the recoverable amount) from the date of purchase. The company uses straight-line depreciation for its hotels. The was reported as: Appraisal Date 12/31/20X0 12/31/20X1 12/31/20X2 Hotel Value €2,200,000 €1,400,000 €1,700,000 P11-24 IFRS impairment and reval- uation (LO 11-10) Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap 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 hotel asset if IceCap chooses the IFRS revaluation model to value this property. AT&T c S S
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning