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Excess Depreciation transfer bt reveluation and retained earnings

Pphinoluu5y ago
Per the lecture, when there is an increase in the annual depreciation charge due to a high revalued amount, the excess depreciation is transferred from the revaluation reserve to retained earnings. I want to find out when the opposite happens i.e. the revalued amount is less than the carrying value leading to a less annual depreciation charge what happens to the reduction in the annual depreciation charge
PP2-D2Tutor5y ago#1
Hi, Nothing happens as this is very unlikely to happen. The higher value of the asset will always lead to an increased depreciation charge over the remaining life of the asset. Thanks
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