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Hello Sir,
What if the value of a non current asset declines.. Will v Debit the revaluation and Credit the Non current Asset. And then show it as a negative reserve in Statement of financial position? I am confused, please help me out on tht..Thankyou
You do not ‘devalue’ (certainly not in Paper F3 anyway).
We are not normally trying to show a ‘true’ value in the Statement of financial position (we can revalue, but it is not done that often). We depreciate the asset, but not to show a true value, but to spread the original cost over its expected useful life.
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