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can we revalue fully depreciated assets. if yes what will be entries and how to adjust in revaluation reserve.
we have one building last revaluation amount is usd 400,000/- and is fully depreciated two years before. now we have revalued the same again and the revalued amount is usd 650,000/- . depreciation rate is 5%. how can I pass the journal and show in the financial reports. please help me to solve this problem
“can we revalue fully depreciated assets”? No asset should ever be written down to zero! If it’s still being used, even many years after its originally estimated useful life, it should not have been written down to zero!
There is a requirement that estimated useful life should be regularly re-assessed. So, for a 4 year asset, re-assess at end of, say, year 2 and re-estimate useful life of still 3 more years. Re-assess at end of next year and it’s still got three more years.
Re-assess at end of year 4 and continue to carry out this exercise.
I believe that my comments above answer the question raised in your second paragraph
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