03-24-2011, 07:45 PM
Mr. Kamran,
I really appreciate your efforts and it has been of quite help.
With reference to IAS 16 para 35a and 35b i have got a few queries!
Please guide me how to tackle the issue summarized below on urgent importance
In a company where the accounting policy is to state Land and Buildings at Written down value plus surplus on revaluation to market value.
For the year ended 2009 Land and building is stated at cost of Rs. 1,000 and accumulated depreciation of Rs. 287.5, dep. for the year 2009 is Rs. 37.5 (assuming depreciation is at 5% Straight line method)and the Revalued figure of the property is Rs. 1,300.
So the presentation is as follows
Cost = Rs. 1,000
Accumulated Dep. = 287.5
WDV = 712.5
Revaluation Surplus = 587.5
Now for the year ended 2010 land and building the new valuation is Rs. 1,500.
I would like to inquire what would happen to the accumulated depreciation, the depreciation charge for the year, the opening balance and closing balance of the Land and building for the year ended 2010 under both the methods.
Thanks
Faisal.
I really appreciate your efforts and it has been of quite help.
With reference to IAS 16 para 35a and 35b i have got a few queries!
Please guide me how to tackle the issue summarized below on urgent importance
In a company where the accounting policy is to state Land and Buildings at Written down value plus surplus on revaluation to market value.
For the year ended 2009 Land and building is stated at cost of Rs. 1,000 and accumulated depreciation of Rs. 287.5, dep. for the year 2009 is Rs. 37.5 (assuming depreciation is at 5% Straight line method)and the Revalued figure of the property is Rs. 1,300.
So the presentation is as follows
Cost = Rs. 1,000
Accumulated Dep. = 287.5
WDV = 712.5
Revaluation Surplus = 587.5
Now for the year ended 2010 land and building the new valuation is Rs. 1,500.
I would like to inquire what would happen to the accumulated depreciation, the depreciation charge for the year, the opening balance and closing balance of the Land and building for the year ended 2010 under both the methods.
Thanks
Faisal.
