Revaluation reserve

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 February 2012 A company intends to revalue a leasehold land and Building situated in an Industrial Area. Can it be done? If yes
1. What are the steps to be followed?

2.What are the precautions to be taken as an auditor?

3. After revaluation whether depreciation is to be charged on revalued building?

Ravi Jhamb

Ravi Jhamb (Expert)
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29 February 2012 Yes you can revalue your asset. As an auditor you will check revalued certificate issued by Archay or certified professional.

Assets A/c
To Revaluation Reserve

Revaluation Reserve
To Depreciation