Generaly land increase in terms of value so whether we can increase it in the balnace sheet over a period of time???
what isthe rate of appreciation and whther the amount shown as appreciation will be added as income on the credit side of p & l account????
no appreciation is justified in normal course. however you can increase the value in books if there is permanent increase in value and also make an expert valuation.
Amount of appreciation cannot affect profit or loss. it will be credited to Revaluation account.
| Originally posted by : AMANPREET SINGH | ||
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no appreciation is justified in normal course. however you can increase the value in books if there is permanent increase in value and also make an expert valuation. Amount of appreciation cannot affect profit or loss. it will be credited to Revaluation account. |
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agreed and ultimately revaluation ac. will be transferred to p and l
:) .. there is no specified rate for appreciation of land.
it shall be appreciated by crediting the Revaluation Reserve with the increase :)
and in balancesheet you have to show land at the revalued value on the asset side:)and the there will be a corresponding increase in revaluation reserve under reserves and surplus.
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
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