Assets Revaluation

[Former Member]

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!

[Former Member · Accepted solution]

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