Revaluation Reserve

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romil jain

romil jain (Querist)
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07 February 2008 What's the purpose of creating revaluation reserve a/c on merger of two companies.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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07 February 2008 There is no hard and fast rule that re-valuation reserve is a must. It depends upon the terms of merger.

romil jain

romil jain (Querist)
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08 February 2008 Revaluation reserve has been created upon the merger of two companies.now what is its application,i.e how can the new company utilise such reserve?

romil jain

romil jain (Querist)
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08 February 2008 Revaluation reserve has been created upon the merger of two companies.now what is its application,i.e how can the new company utilise such reserve?

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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22 February 2008 It is just a measurement by revaluating your fixed asset that how much as asset you take and take liability against this asset and how much shares you issued so that you can acertain that you take a goodwill or capital reserve against that dealing. So, asset usually revaluated to have assessment of market value of fixed asset

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