Revaluations/change in residual value PPE

This topic has 1 reply, 2 voices, and was last updated 11 years ago by kerri.

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November 20, 2014 at 7:21 pm #211725
danny
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Hi
I am finding it hard to work out how to deal with revalued PPE, or when the useful life or residual value changes. Do you charge depreciation for the year based on it’s revalued amount, even if the revaluation occurs at year end?
If there is a simple pro forma to follow it would be much appreciated
Thanks
Danny
November 27, 2014 at 11:21 am #213778
kerri
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example from pass papers
1/5/7 cost of PPE is $5 for useful life of 20 years. 30/4/8 revalued at $7
cost $5
dep $ 0.25
CV @ 30/4/8 $4.75
revalued amount $2.25
30/4/8 CV is $7
if 30/4/9 revalued to$10 then:
30/4/8 $7
dep 0.37
revalued amount 2.63
30/4/9 $10
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