Revaluation account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2011 Hi,

Gross block Rs. 150,000
Acc Depreciation Rs. 90,000
Net block Rs. 60,000

The asset is revalued to Rs. 125,000.

Can some one please help with the accounting entries for Revaluation reserve and accumulated depreciation effect.

A guidance on AS disclosure requirements would also be helpful.

Thanks

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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10 January 2011 Please confirm whether Gross block has been revalued or Net assets value ?

Suppose it is gross value, Then it will be depreciated based and remaining useful life. The diff of accumalated depre. will be adjusted with revaluation reserve.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 January 2011 The difference between Netblock & revalued value need to be credit to Revaluation reserve. so entry will be

Dr: Fixed asset 65000
Cr: Revaluation reserve 65000

plese refer AS-10

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