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Can a fully depreciated asset be revalued?

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Question ajoutée par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date de publication: 2014/06/08
Divyesh Patel
par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

The answer is No.

Rashad Moursi
par Rashad Moursi , Finance Director & Business Development, International Business Transformer Owners Repr. - Hotels , Investment and financial

No. A fully depreciated asset cannot be revalued because of accounting's cost principle, matching principle, and going concern assumption

Muhammad Fiaz
par Muhammad Fiaz , GROUP MANAGER ACCOUNTS, FINANCE AND TAX , SMPL Group of Companies

Its depend on the policy. if the policy is revaluation thant it can.

Muhammad Faizan ACA Actively Searching for new Opportunities
par Muhammad Faizan ACA Actively Searching for new Opportunities , Financial Operation Analyst / Senior Accountant , Petroleum Development Oman

As per para29 of Internation Accounting Statandard16

"An entity shall choose either the cost model in paragraph30 or the revaluation model in paragraph31 as its accounting policy and shall apply that policy to an entire class of property, plant and equipment.

 

As per para34 "The frequency of revaluations depends upon the changes in fair values of the items of property, plant and equipment being revalued. When the fair value of a revalued asset differs materially from its carrying amount, a further revaluation is required. Some items of property, plant and equipment experience significant and volatile changes in fair value, thus necessitating annual revaluation. Such frequent revaluations are unnecessary for items of property, plant and equipment with only insignificant changes in fair value. Instead, it may be necessary to revalue the item only every three or five years.

 

This means that if the compnay has policy of recording fixed assets at cost than it first has to change its policy for revaluation purpose, which will require the disclosure as per guidlines of relevant standards of IFRS's.

 

Hope you understand.

 

 

 

 

 

 

 

 

 

 

Nasir Hussain
par Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

Good Day!!!

I will not go into the accounting / finances terms as its not my subject....... but there are assets that can be revalued........ we are doing it with our factory machines and automobiles and ithink there is no harm to any organization in doing this.

Asad zaman
par Asad zaman , Audit/Finance , Rafaqat Baber and co

Yes if a company has a revaluation policy of its asset,and asset has still remaining useful life..

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

Yes, we can revalued asset  in the case of  company have 

* - Merger 

* -  Partner  In

* - Out of partner 

* - Liquidation 

 

 

Mohammed Asim Nehal
par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Yes, if it has useful life and can add value to the business even after complete depreciation.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

 

NO

I agree with the assertions by Mr.Mohammad Iqbal Abubaker and support his answer 

Ghazanfar Imran
par Ghazanfar Imran , Financial Controller , National Security Institute

this varies from company to company and policy to policy so we can say YES

Abdul Wahab
par Abdul Wahab , Credit Controller , Takween Advanced Industries

Who Gonna Say No ? Depends on Policies ...