Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Chapter 5 Assets 1 Reporting Losses and Gains on Revaluation

Chapter 5 Assets 1 Reporting Losses and Gains on Revaluation

Ratings: (0)|Views: 1,285 |Likes:
Published by hamarshi2010

More info:

Published by: hamarshi2010 on Dec 23, 2009
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less





 Chapter 5
Reporting losses and gains on revaluation
Measurement Subsequent toInitial Recognition
IAS 16 permits two accounting models:Cost Model. The asset is carried at cost lessaccumulated depreciation and impairment. [IAS16.30]Revaluation Model. The asset is carried at arevalued amount, being its fair value at the date of revaluation less subsequent depreciation andimpairment, provided that fair value can bemeasured reliably. [IAS 16.31]
The Revaluation Model 
Under the revaluation model, revaluationsshould be carried out regularly, so that thecarrying amount of an asset does not differ materially from its fair value at the balancesheet date. [IAS 16.31]
If an item is revalued, the entire class of assets to which that asset belongs should berevalued. [IAS 16.36]
Revalued assets are depreciated in the sameway as under the cost model (see below).

Activity (10)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Chris Anagbonu added this note
very good explanation. detailed and useful- chris
Tom Beeck liked this
Netty Cai liked this
Prazal Thapa liked this
edkatiyo liked this
sandilaw liked this
piine6 liked this
piine6 liked this

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->