[VijayVittal]

Thanks that helped.

[VijayVittal]

My question specifically was regarding the Revaluation of Intangible Assets, when companies choose to apply revaluation to a class of Asset. The Company revalues the cost of the asset in sufficient regularity, my doubt was in one of the videos posted by open Tuition YouTube Channel. Where the Instructor after revealing the asset, only depreciates the asset for the revalued year. But, in one of my workbooks, after a revolution is made the depreciation is made from the year of purchase to the year of revaluation.

Ex:

Machine A : 10,000 CU
Purchased 20X0
No revolution till 20X2
Useful Life = 10 Years
Residual Value = 0

Depricitaion till 20X2 = 10,000/10 = 1000 * 2 = 2000
= 10,000-2000
Carrying Value @ YE 20X2 = 8000

@ YE 20X3 Revaluation was made as the fair value of the asset increased to 12000 CU.

Now @ YE 20X3 :
Is it A) Depreciation from the Year 20X3 after the revaluation: 12,000/8 = 1500
or Is it B) Depreciation from the Year 20X3 after the revaluation: 12,000/8*4 = 6,000 (4 is the year or uasge so far, from 20X0 till 20X3.

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