revaluation of assets

AS 842 views 1 replies

A company  had revalued its  asset twice (1983-84 & in 2006), can it  revaluate its fixed assets again in 2008 and reflect the revised value in its accounts within the provisions of Laws applicable.   

 

Please give your comments on the ’Legality of Revaluation of Fixed Assets ', with specific reference to:

 

1) Provisions of Companies Act, 1956

2) Income Tax Act, 1961

3) Any other law for the time being in force.

 The company is a sick industrial company. Will the provisions of Sick Industrial Companies Act affect the re-valuation of assets.

Replies (1)
Originally posted by :prathiba
" A company  had revalued its  asset twice (1983-84 & in 2006), can it  revaluate its fixed assets again in 2008 and reflect the revised value in its accounts within the provisions of Laws applicable.   
 
Please give your comments on the ’Legality of Revaluation of Fixed Assets ', with specific reference to:
 
1) Provisions of Companies Act, 1956
2) Income Tax Act, 1961
3) Any other law for the time being in force.
 The company is a sick industrial company. Will the provisions of Sick Industrial Companies Act affect the re-valuation of assets.
"


 

Hello Prathiba

You can revalue the Fixed assets as many times. if i am not mistaken, there is no such provision in the companies act .

In fact, you are bringing the Fixed Assets values to the correct fair market value.

So you are show the correct value in your books.

There won't be any problem as Income Tax Act or Sick industrial Act.

The only thing is the you have pass the necessary accounting entries to revaluations of Fixed assets.

Regards

Srinivas

 

 

 


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