Skip to Content
avatar image
Former Member

Assets Revaluation

Hello,

I need some help, please!

I have to do this kind of revaluation:

E.g.: aquisition value = 50000; useful life = 10 years

depreciation per year = 5000

After 2 years: the revaluated value = 64000;

the accumulated depreciation = 10000

the book value = 50000 - 10000 = 40000

It means that we have an increase in asset value = 64000 - 40000 = 24000

Now I have to do the posting:

24000 asset value = reserves from revaluation 24000

but I want to keep historically the aquisition value(50000) and the revaluation(24000).

The remaining life is 8 years and the new depreciation is 64000/ 8 = 8000

After 1 year: the new revaluated value of this asset = 30000

the accum. deprec. = 8000

the book value = 64000 - 8000 = 56000

It means that we have a depreciation = 56000 - 30000 = 26000

So, I have to post:

______________________________ = asset value 26000

24000 reserves from revaluation

2000 expensive from depreciation

/ impairment of assets

I want to keep also the aquis. value and all revaluation values.

Well, can somebody tell me what should be the solution? (I need different revaluation area, etc)

Thanks!

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • Best Answer
    avatar image
    Former Member
    Aug 20, 2007 at 08:40 AM

    Hi,

    I don't know your set up.

    In this situation I will use 3 depreciation area.

    01 Normal creating postings

    10 Values from 01 and the revaluation Statistical one

    20 Area 10 - 01 creating postings for the differences between 01 and 10.

    Don' forget to allow negative values for area 20 (and perhaps 10)

    Paul

    Add comment
    10|10000 characters needed characters exceeded