In the year of revaluation
Go to the
(column Z) of the fixed asset which has been revalued.Enter the cost adjustment required to reflect the revaluation.Go to the
cell for the cost adjustment (column AA).Select '
' from the drop down list.Example:A plot of land cost £150,000 and no depreciation was charged. If it is then revalued at£200,000, enter 50,000 in the
cell to reflect the revaluation:
If depreciation is charged on the revalued fixed asset
Go to the
cell (column AB).In the yellow cell enter the
amount, which together with the cost adjustment, adjuststhe net book value of the asset to the revalued amount (n
ormally accumulated depreciation iscompletely reversed)
.Go to the
cell for the depreciation adjustment (column AC).Select '
' from the drop down list.
Two points to note regarding entering the depreciation adjustment:
As it is a negative amount you have to enter, place the negative sign (“-”) before theamount. The program represents negative amounts in parenthesis e.g. -5,000.00 will appearas (5,000.00).
It is recommended that you print the report '
Fixed Asset Depreciation Movements
' toobtain the accumulated depreciation brought forward and depreciation charge in the year.This will ensure you do not accidentally enter a depreciation adjustment that is greater thanthe accumulated depreciation brought forward and depreciation charge in the year. Toaccess this report click the button '
Two examples are given below to illustrate the cost & depreciation adjustments you shouldmake.Example 1A property cost £250,000 with £55,000 accumulated depreciation giving a net book value of £195,000. If the property is revalued at £300,000, the cost & depreciation adjustmentsrequired to reflect the revaluation are as follows:
© Rupert Parsons 2013 3