Accountancy Forum

why is writing up of asset more than their original cost wrong?

Assets can be shown at their revalued amount but in that case the Revaluation Account is to be credited by the increased amount.

Ace

Acording to IAS 2, The can also be carryied at there Revalued amount but in that case you have creat a new account Surplus on Revaluation of Asset. this account balances the excess and form part of balance sheet.

Ibri