02 March 2010
revaluation reserve was created due to upward revaluation of a fixed asset "A".
Later a fixed asset "B" was downward revalued.
As per AS-10, the amount of downward revaluation may be charged to the revaluation reserve to the extent upward revaluation included in revaluation reserve.
My query here is that, can revaluation reserve created due to asset "A" be utilised to charge the downward revaluation amount of asset "B".
03 March 2010
The entry on downward revaluation is the opposite of upward revaluation both entries affect P & L A/c because of depreciation involved. Surely the reserve created can be utilised as long the Asset in both up and downward revision is the same not Block of Assets concept as in I Tax.
CAclubindia
