Revaluation of Buildings

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2011 As a Organisation Policy useful life of Property, Plants & Equipments is considered to be 50 yrs. What is the accounting treatment if one of the property is very old & it has already depreciated for 50 yrs but today it has got a nice fair value. Should the revaluation be treted like that of land and no further depreciation is required to be provided?

KSB22

KSB22 (Expert)
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03 May 2011 Depreciation can be charged on revalued amount of PP&E.

The additional depreciation relatable to revaluation may be adjusted against Revaluation Reserve by transfer to Profit and Loss Account.

However no deduction of this depreciation for the income tax,Divdends and Managerial remuneration etc will be allowed.

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