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Revaluation of Fixed Assets

Revaluation of Fixed Assets

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Published by Rupert Parsons
User guide for the fixed asset program (excel)
User guide for the fixed asset program (excel)

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Published by: Rupert Parsons on Apr 23, 2013
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10/16/2014

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Fixed Asset ProgramManual
Revaluation of Fixed Assets
Fixed Asset Program ManualCopyright © 2013 Rupert ParsonsThis document is licensed under the Creative Commons Attribution Share Alike License version 3.You may copy, distribute and/or modify it under the conditions stipulated in the copyright licence.Click the link below to view the details of the copyright licence which applies to this publication:http://creativecommons.org/licenses/by-sa/3.0/deed.en
© Rupert Parsons 2013 1
 
Introduction
This chapter contains the following sections (each section starts on a new page):
In the year of revaluation
The year following revaluation
Assumed Knowledge
This chapter assumes you are already familiar with the following:
The accounting concepts governing fixed asset revaluations.
Whether upward revaluation of fixed assets is permitted in your country.
© Rupert Parsons 2013 2
 
In the year of revaluation
Go to the
Cost Adjustment
cell
 
(column Z) of the fixed asset which has been revalued.Enter the cost adjustment required to reflect the revaluation.Go to the
Reason
cell for the cost adjustment (column AA).Select '
Revaluation
' 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
Cost Adjustment
cell to reflect the revaluation:
If depreciation is charged on the revalued fixed asset
Go to the
Depreciation Adjustment
cell (column AB).In the yellow cell enter the
negative
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
Reason
cell for the depreciation adjustment (column AC).Select '
Revaluation
' 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 '
Depreciation Report
'.
Examples:
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

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