19 May 2008
Under international Accoounting standards & any other GAAP Charging depreciation to an asset of a company is rest with the management by taking into account the useful life, residual value etc of the asset in question. However Many countires like India stipulates charging depreciation with a pre-determined rate as scheduled by the government to protect its interest on revenue from income tax,any deviation from this is not permitted under any circumstances. Nevertheless revaluation of assets is permitted under the standard.When the asset is revalued the assets in question can be subjected to a decrease in value with adequate supproting documentary evidence and can fully be de-recognized. I am afraid whether such de-recognition is possible to the extent of a specific requirement unless proved to be necessary to do so. I hope you may be aware of the revaluation model as per the standards.
CAclubindia
