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Assets fully depreciated and written off now needs to be written back : IFRS

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Anjul Agrawal

4 Points Posted on 30 October 2022

Previous accountant wrote off a fully depreciated asset erroneously which still holds significant value. Can we revalue this asset using a certified valuer and bring it back to books and claim further depreciation going forward. We follow IFRS.

Replies (3)

Quick Summary

A company mistakenly wrote off a fully depreciated asset that still holds significant value. Following IFRS, they are asking if they can revalue the asset using a certified valuer and reinstate it on their books to claim further depreciation. The discussion explores the possibility of revaluation and correcting prior period errors according to IFRS standards.

Yasaswi Gomes new

Finance

4592 Points Posted on 30 October 2022

Yea. If you have revaluatiin policy and not at cost you can do that. If you value at cost then the error can be set right through prior period changes standard

Anjul Agrawal

4 Points Posted on 30 October 2022

Thanks, but does that not mean I have to first say it was an error to write off the asset and then bring it back to books, then revalue it and then revise its useful life to make it depreciable ?

Yasaswi Gomes new

Finance

4592 Points Posted on 31 October 2022

Sorry i didnt check yoir message. Thats what i was asking about whats your company policy. Like subsequent treat2is cost or revaluation method. Sorry about the typo my mobile screen broke lol