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+--- Thread: Revaluation of Assets (/thread-revaluation-of-assets)
Revaluation of Assets - nabeelanwer - 06-14-2006
Hello Dears, could anyone assist , if assets are revalued during the year what would be the treatment for accumulated depreciation before the revaluation in accordance with IAS 16 . i know it can be either restated propotionately or eliminated against gross carring amount. but i m confused , should the depreciation for the year of revaluation has also same treatment?
Waiting!
- insaan - 06-14-2006
Assalam O Alaikum
yaar itz simple
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"> it can be either restated propotionately or eliminated against gross carring amount<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
refer IAS 16 para 35
yaar just remember this formula ... revalued amt = N.B.V at revaluation date + surplus on revaluation (& vice versa)
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"> the depreciation for the year of revaluation<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
<b>subsequent depreciation</b> on assets revalued is based on revalued amounts
like
A.if rev date is during the yr, say 30 june where yr end is 31 dec , dep will be charged 4 half yr on NBV at june 30...for next half yr dep will be charged on revalued amt
B.if revaluation at yr end , dep will be charged on N.B.V at yr end i.e not at revalued amt
Hope it helps
ALLAH HAFIZ
- Ali Akbar - 06-14-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by insaan</i>
<br />Assalam O Alaikum
yaar itz simple
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"> it can be either restated propotionately or eliminated against gross carring amount<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
refer IAS 16 para 35
yaar just remember this formula ... revalued amt = N.B.V at revaluation date + surplus on revaluation (& vice versa)
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"> the depreciation for the year of revaluation<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
<b>subsequent depreciation</b> on assets revalued is based on revalued amounts
like
A.if rev date is during the yr, say 30 june where yr end is 31 dec , dep will be charged 4 half yr on NBV at june 30...for next half yr dep will be charged on revalued amt
B.if revaluation at yr end , dep will be charged on N.B.V at yr end i.e not at revalued amt
Hope it helps
ALLAH HAFIZ
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
One thing more, whenever the asset is revalued the depreciation as at the date of revaluation shall be provided first and then it shall be revalued. Subsequent depreciation shall be provided on the basis of revalued amount.
ICAPians, the unparalleled..