(v) GHL purchased a factory site in Malaysia on 1 April 2019
with intention for industrial use. Land prices in the area had
increased significantly in the years immediately prior to 31 March
2020. Nearby sites had been acquired and converted into residential
use. It is felt that, should the GHL’s site also be converted into
residential use, the factory site would have a market value of $27
mil- lion. $1.5 million of costs are estimated to be required to
demolish the factory and to obtain plan- ning permission for the
conversion. GHL was not intending to convert the site at 1 April
2019 and had not sought planning permission at that date. The
current replacement cost and carrying amount of the factory site
are correctly calculated as $25.1 million and $28 million
respectively as at 31 March 2020 before revaluation. Fanny did not
reflect the change in fair value of the factory site even the
factory site is measured using the revaluation model under HKAS
16.
What are the adjusting entries