Archive / 1.5.5 Valuation

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Treating accumulated depreciation when revaluing assets

When revaluing assets, your two options for dealing with current accumulated depreciation are either to eliminate it entirely or restate it proportionately. Let me explain both options with examples detailing the steps. Elimination With this option the accumulated depreciation is eliminated against the gross carrying amount of the asset with the net amount restated to […]

List of actions to take if you decided to use revaluation method for your PPE items

Let’s say you’ve initially measured your assets using the depreciation method. This means that the cost of the asset is subsequently expensed showing also the “drop in its value” and in essence what you’ve been doing so far is distribute the expense of the investment over the period it’s being used.  (more…)