08-06-2010, 03:00 PM
section 235 of the Companies Ord. 1984, permits companies to revalue their assets. In this situation, the difference between present NBV and revalued amount is credited to a separate account "Surplus on Revaluation of Fixed Assets". This account is displayed on the face of Balance Sheet after capital and Retained Earnings (Unappropriated Profits), or in other word after equity and above Long Term Loans. Assets are re-booked at revalued amount and depreciation (Amortization) is charged on new amount. However, all relevant fact must be disclosed in a separate note. Please note that Surplus on Revaluation of Fixed Assets account can't be used for any distribution of dividend or appropriation.
