What is annual excess depreciation treatment if RBM is used? In SLM, we just subtract depreciation for year before revaluation and after revaluation. What is treatment if RBM is used before and after revaluation.
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Revaluation
5y ago#1I do not know what you mean by RBM and SLM. They are not standard acronyms (and certainly not ones that are used in the exam).
Sorry sir, I forgot to write their abbreviations. I meant SLM for Straight line method and RBM for Reducing balance method.
5y ago#3It is the same treatment for both methods - the difference between the depreciation on the revalued amount and what the depreciation would have been if they had not revalued.
Ok sir. Thank you.
5y ago#5You are welcome :-)
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