As-26

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Querist : Anonymous

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07 September 2011 WHY IS AN INCRESE IN RESIDUAL VALUE AFTER REVALUATION NOT PERMITTED IN AS-26 BUT DECRESE PERMITTED

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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26 September 2011 Asper Ind AS-38
If an intangible asset’s carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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26 September 2011 as per old as it was not permissible, but according to the new accounting standards it is permissible which gonna applicable very soon

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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26 September 2011 the reason why it was not permitted was that it was assumed that generally active marketas are not available for the Intangible assets as in the case of tangible assets
therefore determination of fair value on higher side is very difficult to determine

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