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IAS 16 Revaluation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 16 Revaluation

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarP2-D2.
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    Posts
  • October 7, 2016 at 5:22 pm #342644
    Avatarnari
    Member
    • Topics: 259
    • Replies: 175
    • ☆☆☆

    Hello

    As the standard states, when a revaluation is being done, the entire class of assets has to be revalued.

    My question is, does the entire class have to be revalued at the same time? If for example the entity purchased 5 machines 10 years ago and 1 machine last year. I don’t think it would make sense to revalue the machine which was purchased last year.

    Please advise.

    October 8, 2016 at 10:05 pm #342756
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    You have to revalue all the assets in that class regardless of when they were purchased. The likelihood is that those purchased most recently will not have suffered any material increase in value anyway.

    Thanks

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