DEP. On REVALUATION (REPLY ASAP)

[salloo70]

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]

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]

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]

<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]

<font color="yellow">thanxxxxx alloottttt buddiieessss )</font id="yellow">