+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forum-the-profession)
+--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forum-accounting-and-audit)
+--- Thread: DEP. On REVALUATION (REPLY ASAP) (/thread-dep-on-revaluation-reply-asap)
DEP. On REVALUATION (REPLY ASAP) - salloo70 - 02-22-2006
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
- smurfyazhar - 02-22-2006
6 month depriciation on original cost and 6 month on revalued amount
is the correct answer. Therefore total Dep. is 10000+15000=25000
Cheers
- hanifasif - 02-22-2006
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.
- hanifasif - 02-22-2006
<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">
- salloo70 - 02-22-2006
<font color="yellow">thanxxxxx alloottttt buddiieessss )</font id="yellow">