ALOK RATNA (CHIEF CONSULTANT) (190 Points)
09 June 2011Generaly land increase in terms of value so whether we can increase it in the balnace sheet over a period of time???
what isthe rate of appreciation and whther the amount shown as appreciation will be added as income on the credit side of p & l account????
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 09 June 2011
no appreciation is justified in normal course. however you can increase the value in books if there is permanent increase in value and also make an expert valuation.
Amount of appreciation cannot affect profit or loss. it will be credited to Revaluation account.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 09 June 2011
| Originally posted by : AMANPREET SINGH | ||
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no appreciation is justified in normal course. however you can increase the value in books if there is permanent increase in value and also make an expert valuation. Amount of appreciation cannot affect profit or loss. it will be credited to Revaluation account. |
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agreed and ultimately revaluation ac. will be transferred to p and l
Aparna Raja K.C
(Student)
(520 Points)
Replied 10 June 2011
:) .. there is no specified rate for appreciation of land.
it shall be appreciated by crediting the Revaluation Reserve with the increase :)
and in balancesheet you have to show land at the revalued value on the asset side:)and the there will be a corresponding increase in revaluation reserve under reserves and surplus.
CAclubindia
