Historical cost concept is contradicting....

 When we revalue fixed assets, the profits on revaluation is transferred to revaluation Reserve A/c and also the fixed assets are shown at revalued figure. Since historical cost concept says FA should be shown at HC i.e. Original cost ,then how can we show assets at Rev. Fig.

pls solve my doubt..

Replies (1)

hello abhinandan,, as per AS-10, fixed assets should be valued at either historical cost or any other amt. which replaced historical cost due to revaluation as per dis standard

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