- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
- Posts
I would like to know about the entries regarding revaluation in the statement of comprehensive income(especially on the year it occurs–the enteries) and balance sheet
To revalue the asset:
1) the cost account is debited with the difference between the revalued amount and the original cost. The balance is now the revalued amount.
The credit is to a revaluation account.
2) the accumulated depreciation is debited to remove the existing balance, and is credited to the revaluation account.
The balance on accumulated depreciation is now zero, and the carrying value (cost less accumulated depreciation) is therefore the revalued amount.3) The balance on the revaluation account is the surplus on revaluation. This appears in the Statement of financial position as a capital reserve.
The surplus is also disclosed in the Statement of profit or loss and comprehensive income.
- You must be logged in to reply to this topic.