Depreciation calculation

 

 



 

The company made an error in depreciation calculation during earlier financial periods.



 

Due to this the company's net block is undervalued by Rs 1 cr.



 

 



 

How could we rectify this error and disclose in financials



Option A

Considering this as prior period item in the financials



Option B

Revaluation of asset and bringing it to current market value.



 the asset can be revalued after passing resolution in meeting and bring it to current

market value & create a revaluation reserve of the same amount at asset has been increased