Deferred Tax – Example 3 Revaluations.

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November 12, 2019 at 4:08 pm #552332
rishabbohra98
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Sir the carrying value is taken as the revalued amount of $800,000 but shouldn’t the depreciation on revalued amount of 800k be adjusted to give the correct Carrying value @ year end.
The revalued amount of 800k does not reflect depreciation in your answer notes. Why is that?
November 13, 2019 at 5:07 pm #552491
Stephen Widberg
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No
When you revalue an asset the new starting point is whatever valuation the surveyor gives you. depreciation will start afresh based on the new valuation of 800 and the remaining useful life.
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