Revalued Amount, and revaluation Surplus are two different values. depreciation is charged on the Revaluation amount and not on the revaluation surplus.
non current asset = $15000
revalued Amount = $20000
Revaluation surplus =$5000
will charge depreciation on the $20,000, right? and not on the Surplus $5000. please answer my question. Thank you sir.
Ask the Tutor ACCA FA
REVALUATION OF NON CURRENT ASSET
7y ago#1Yes - depreciation is charged on the revalued amount.
The surplus goes to the revaluation reserve.
Sign into reply to this topic.