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DEP. On REVALUATION (REPLY ASAP)
02-22-2006, 06:18 PM,
#1
DEP. On REVALUATION (REPLY ASAP)
yar friends

plz guide me thorugh this

accounitng period ends on 31st dec

on 1 jan asset costs 100,000 and depreciation charged on straight line basis 10%

on 1 july asset cost after revaluation is 150,000

how could the depriciation be charged????

Either on revalued cost for the whole year???? OR 6 month depriciation on original cost and 6 month on revalued amount????????

plz answer in the light of IAS 16
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02-22-2006, 06:25 PM,
#2
 
6 month depriciation on original cost and 6 month on revalued amount
is the correct answer. Therefore total Dep. is 10000+15000=25000

Cheers
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02-22-2006, 07:49 PM,
#3
 
yeah under IAS 16, asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent depreciation, provided that fair value can be measured reliable.

So it means 6 month dep on cost and 6 month on revalued amount.
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02-22-2006, 07:57 PM,
#4
 
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by hanifasif</i>
<br />yeah under IAS 16, asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent depreciation, provided that fair value can be measured reliably.

So it means 6 month dep on cost and 6 month on revalued amount.

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
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02-22-2006, 09:09 PM,
#5
 
<font color="yellow">thanxxxxx alloottttt buddiieessss )</font id="yellow">
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