Assets on revaluation model

Hi there.

I am stuck on this bit. We have purchased an asset for £100k on 1-Jan-2014 and have chosen the revaluation model as our accounting policy for depriciation. At the year end 31-Dec-2014 do we revalue the asset? and if the value decreases by 10k, do we record it as debit impairement loss account and credit accumulated loss account. I am a bit confused as to where the depriciation sits in all this as the asset still has to be depreciated. Is it depreciated straight after revaluation for the year end 31-Dec 2014.

Looking forward to an answer.

Kind regards
Besar

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Answers

  • BesarB
    BesarB Registered Posts: 14
    Thanks for the reply. I think you only debit revaluation surplus when there has been a previous increase in value. If an asset decreases in value without previous increase then you debit the impermanent loss account p/l and credit the accumulated impairement account b/s.
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