Revaluation of Assets

Hi, OK, so have you set out your answer in the same format as we've done in the class notes? If not then I'd recommend that you start there and use the columns for historic cost, revalued amount and revaluation surplus. Work it using the working and then let me know where exactly your are struggling. Focus on getting the initial revaluation correct first and the subsequent treatment before considering any reduction in value of the asset. Once you've done that I'll then help you further. Thanks

Hi, Yes, I've just checked your calculations and can see that they're correct. The revaluation reserve is at £48m so it can absorb the decrease of £30m leaving the £18m left. If we wanted to be really specific, then of the £18m, £10m belongs to the land and £8m to the building. Good work on solving the question, well done. Thanks