revaluation of assets
revaluation of assets
plz tell me that when the life of asset coplete and we dont want to dispose it. how we will keep it at organization i mean that at which rate we will keep in our organization plz tell me
Once the life of the Asset is Completed, System always shows it at residual value. Because, depreciation is calculated and charged based on the expected life time of the Asset.
However, if we found it, the Asset has still has some realisable value and can be used, then we can revalue it based on technical valuers certificate. Otherwise, the same can be continued in use without revaluing.
The impact is,
If We don't revalue it, then there wouldn't be depreciation. So, impact on P&L will be very less.
If we revalue it, then, in the year of revaluation, we will have some miscellaneous profit on account of Revaluation, and the same will be depreciated in the next coming years. So, in the initial year, you will have profit followed by depreciation as expense in the next coming years.
Is it OK ?
Upendra Donepudi
However, if we found it, the Asset has still has some realisable value and can be used, then we can revalue it based on technical valuers certificate. Otherwise, the same can be continued in use without revaluing.
The impact is,
If We don't revalue it, then there wouldn't be depreciation. So, impact on P&L will be very less.
If we revalue it, then, in the year of revaluation, we will have some miscellaneous profit on account of Revaluation, and the same will be depreciated in the next coming years. So, in the initial year, you will have profit followed by depreciation as expense in the next coming years.
Is it OK ?
Upendra Donepudi
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