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Hi sir, I wanted to ask that how do we deal with a Loss on an Asset after its been revalued?
For example,
An Asset had a Cost of 240,000 @ 1 april 2010, estimated life of 8 years, carrying value of 180,000 @ 31st march 2012, with an accumulated depreciation of 60,000 (for 2 years)
The asset is to be revalued to 160,000 at 1st april 2012 with a revised life of 5 years.
And we also have to transfer revaluation surplus to retained earnings annually.Can you please help with this. Thank you.
Hi,
The loss is taken first against any gains held in the revaluation reserve and any excess is recognised through profit or loss.
Have a go at your question above, and try to use the layout from the videos for a revaluations and see how you get on. Let me know once you’ve done it and I can then explain to you where you’re right or wrong.
Thanks
And sir if this asset was never revalued before, we will take the loss to SOPL and recognise as loss on revaluation?
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