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Hi sir,
If an asset has been revalued at the last date of the financial year (e.g., at December 31st), do we charge depreciation based on the remaining useful life and the revalued amount for that financial year, or do we charge depreciation for that year based on the original cost and useful life?
Thank you!
Sir, in one of ACCA’s technical articles, it says that “if the revaluation takes place at the year-end, then the asset would first be depreciated for a full 12 months based on the original depreciation of that asset. This will enable the carrying amount of the asset to be known at the revaluation date, at which point the revaluation can be accounted for.” Is this what we should follow in the exam?
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