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Deferred Tax – Example 3 Revaluations.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Deferred Tax – Example 3 Revaluations.

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Stephen Widberg.
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  • November 12, 2019 at 4:08 pm #552332
    rishabbohra98
    Participant
    • Topics: 112
    • Replies: 88
    • ☆☆☆

    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
    Keymaster
    • Topics: 16
    • Replies: 3443
    • ☆☆☆☆☆

    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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