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Hi sir,
i have 2 questions. 1) if an entity witnesses that the carrying amount of non current tangible asset is zero, however the entity has intention to use it , So, the entity decides to revalue it and carry it in fair value(revalued value) in its SOFP. i want to know that the entity must revalue that asset in the following each year? Does IFRS have any such requirement?2)the second one is quite similar to the question above.
We know that an entity can do subsequent measurement to initial recognition through cost and revaluation model. If we recognised the tangible non current asset at cost initially, but later we measured it with fair value replacing our cost model with revaluation model. Must we revalue that asset in the following every year?Thank you a lot in advance..
Yes and yes
Where the entity elects to use the valuation model then all assets in that class shall be treated the same and a valuation exercise should be regularly carried out
Ok?
But if the entity calculates in the following year and witnesses that cost of revaluation (eg cost of experts) exceeds benefit. i mean if revaluation is usefulness, the entity does not have a chance return back again to cost model according to IFRS? how can entity do in such stiuation?
The subsequent revaluations are recognised through statement of profit or loss
Where’s the problem?
statement of profit or loss? according to IAS 40, subsequent revaluations are recognized in the P/L statement, but as per IAS 16 we recognize subsequent revaluation in the Revaluation Surplus. am i right??
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