revaluation model to cost model

This topic has 5 replies, 2 voices, and was last updated 9 years ago by MikeLittle.

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December 5, 2016 at 9:43 am #353963
complicated
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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?
December 5, 2016 at 10:28 am #353982
MikeLittle
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Reverse the entry that created it!
Dr Revaluation Reserve
Cr TNCA
December 5, 2016 at 12:16 pm #353993
complicated
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Oh thought it was more complicated than that, thank you!
🙂
December 5, 2016 at 4:03 pm #354029
MikeLittle
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You’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
December 5, 2016 at 4:18 pm #354042
complicated
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Okay, I’ll keep that in mind 🙂
December 5, 2016 at 4:35 pm #354072
MikeLittle
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You don’t need to remember it for too long – it will all be over before you know it!
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