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Market value of Invested securities
Value of stock on hand.
you should mention the case of increase of value or decrease of value in normal the following account will be affectedThe balance sheet account for the asset (purchase amount)The corresponding revaluation account (either positive or negative)The depreciation account (Balance sheet account)Depreciation costs account (profit and loss account, either positive or negative.
and there is will be other impact for impairment of assets
Revaluation of Assets:
In revaluation of Assets all the amounts of revaluation are credited to "EQUITY" under head " Revaluation of Asset"
1. Asset A/C
2. Revaluation Reserve (Statement of Changes in Equity)
Under FRS15 the amount to which a
fixed asset is revalued is different than
under IAS16. As far as properties are
concerned (these probably being the class
of fixed asset most likely to be carried at
valuation) the basic valuation principle
is value for existing use – not reflecting
any development potential. Notional,
directly attributable acquisition costs
should also be included where material.
However, specialised properties may need
to be valued on the basis of depreciated
replacement cost, since there may be no
data on which to base an ‘existing use’
valuation. If properties are surplus to the
entity’s requirements, then they should
be valued at open market value net of
expected directly attributable selling costs.
Revaluation losses that are caused by a
clear consumption of economic benefits,
for example physical damage to an asset,
should be recognised in the profit and loss
account. Such losses are recognised as an
operating cost similar to depreciation.
Other revaluation losses, for example the
effect of a general fall in market values
on a portfolio of properties, should be
partly recognised in the statement of total
recognised gains and losses. However, if
the loss is such that the carrying amount of
the asset falls below depreciated historical
cost, then any further losses need to be
recognised in the profit and loss account.
profit and loss, owner equity, and assets accounts which reflect a direct relation between revaluation amounts and, share prices and/or returns.
UK generally accepted accounting principles (GAAP) permit Þxed assets to be recognized in Þnancial statements at revalued amounts.
upward revaluations are discretionary and not permitted under US GAAP, whereas, as under US GAAP, downward revaluations are required when asset values fall.
AGREE WITH ALL ANWERS
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