In case there is a downward fair value adjustment on a depreciable item of non-current asset, how will the adjustment for depreciation be done?
I would have:
Dr Group PPE
Cr Net assets of subsidiary @ reporting date
Is that right?
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Adjustment in depreciation from fair value adjustment
8y ago#1Hi,
Yes that's correct, as the reduction in the fair value means that we will be charging less depreciation in the group accounts and so the depreciation needs to be added back.
Thanks
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