Revluation

AS 219 views 5 replies

We are a listed company we have a factory building and land we want to revalue it as its book value is very much lower as compare to market value can we do it i.e revaluation of entire class of fixe dassets i.e Land & Building what are the formalities and tax implication please clarify

Replies (5)
U can do so only for accounting purposes. As per AS 10 on PPE u have to revalue entire class of buildings like office or factory

what will be benifts to us i.e listed company will over market price of shares will hike

An asset is a resource that has economic value to a business. As a business owner, it is important to know the value of your assets as they can be used as leverage for obtaining loans and can be used to estimate your ability to repay your debts. Calculate your current assets, long-term investments, fixed assets and intangible assets and add them up to get your total business assets.

U can do so only for accounting purposes. As per AS 10 on PPE u have to revalue entire class of buildings like office or factory 

 

You are listed CO. So that you apply Ind As 16 Property, plants and equipments. As per ind as 16 After recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. There is no tax implications on revaluation because income tax doesn't consider revaluation of assets. But your B/S Value Will be increased.


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