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At Revaluation of Assets, Which accounts are affected?

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Question added by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC
Date Posted: 2014/11/05
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Market value of Invested securities

Value of stock on hand.

Mohammed Ismael
by Mohammed Ismael , Finance Manager , confidintional

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"

Muhammad Faisal Zia
by Muhammad Faisal Zia , Accounts Executive , ALWAKEEL Foodstuff Packing Factory LLC

1. Asset A/C

2. Revaluation Reserve (Statement of Changes in Equity)

Akram Massoud
by Akram Massoud , FINANCE MANAGER , Autoexcellence LTD

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. 

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

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.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

AGREE WITH ALL ANWERS  

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