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Dear sir,
I hope you are doing well. Sir, I’ve got some issues in applying IAS – 16 revaluation model. My issues are as follows:
1. Can assets, that are still in Capital Work in Progress, be revalued. If yes, What should be their treatment, as they are not yet completed to be classified as PPE. Can revaluation surplus be created, if they were to be revalued?
2. If the entire class of assets are revalued, such that some of these assets are revalued upwards and some of them downwards, then can revaluation surplus arisen against one asset be net off against revaluation loss of another asset. Provided that, both of them belong to same class of assets.
I could really use your help in these issues. Thanks for your help
Regards,
1) That’s not a reasonable scenario. I’m going to say “No” to that one
2) Surely a revaluation downwards is an impairment and, as such, it should be expensed unless that same asset has previously been revalued upwards and there is still something left in the Revaluation Reserve related to that asset
Sir i have been working on a client where they have revalued the assets including those that are not yet complete and are still in the CWIP. So i have no idea how to treat that revalued amount. Should i ignore it or create a revaluation surplus of it??
Mohsin, answer this for me please. How much is your client being charged for this audit / accountancy work?
And how much of that are you sending my way for expert guidance?
Let me know your answer and I’ll decide how much of my time to allocate to answering your question
Hope to hear from you soon – I could really use a cash injection just before the December holidays
Well, ok…. i just needed some help as i couldn’t find any relevant material on this in IFRS. It could have taken you not more than 10 minutes to answer. But thank you for your reply and believe me i’m just an internee and not getting paid for this.
Anyways, stay blessed.
There are seniors in the office that should be able to answer the question. As a trainee you should direct such queries to those seniors. Only then can they appreciate the need for their own internal training methods to be maintained.
If all your queries were answered by an outside source how could those in charge in the office know what is needed?
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