Hi Mike,
What adjustments should the entity make if it switches from revaluation model to cost model for its PPE? It is a retrospective application, right? Where should the existing revaluation surplus go?
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revaluation model to cost model
9y ago#1Reverse the entry that created it!
Dr Revaluation Reserve
Cr TNCA
Oh thought it was more complicated than that, thank you!
:)
9y ago#3You're welcome - but remember, you can only set the carrying value to what it would have been all along if you hadn't opted for valuation model
Okay, I'll keep that in mind :)
9y ago#5You don't need to remember it for too long - it will all be over before you know it!
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