Mwailafu Ltd’s head office building is the only building it owns. Using professional valuers, it revalued this building on 1 January 2016, at TZS 2,100,000. Mwailafu Ltd has adopted a revaluation policy for buildings from this valuation date and has decided that the original useful life of buildings has not changed as a result of the revaluation. The building was acquired on 1 January 2006. The cost of the building on acquisition was TZS 2,500,000 and the accumulated depreciation to the 31 December 2015 amounted to TZS 500,000. The depreciation up to 1 January 2016 was depreciated evenly since acquisition. The professional valuer believes that the residual value on the building would be TZS 600,000 at the end of its useful life.