Revaluation of Buildings
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 May 2011
As a Organisation Policy useful life of Property, Plants & Equipments is considered to be 50 yrs. What is the accounting treatment if one of the property is very old & it has already depreciated for 50 yrs but today it has got a nice fair value. Should the revaluation be treted like that of land and no further depreciation is required to be provided?
03 May 2011
Depreciation can be charged on revalued amount of PP&E.
The additional depreciation relatable to revaluation may be adjusted against Revaluation Reserve by transfer to Profit and Loss Account.
However no deduction of this depreciation for the income tax,Divdends and Managerial remuneration etc will be allowed.
The additional depreciation relatable to revaluation may be adjusted against Revaluation Reserve by transfer to Profit and Loss Account.
However no deduction of this depreciation for the income tax,Divdends and Managerial remuneration etc will be allowed.
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