Note of historical cost profits and losses

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I don't understand what is Note of historical cost profits and losses and what impact it has in accounts?<BR><BR>Would anyone help me understanding this and teach me how to learn this.<BR><BR>Any thoughts greatly appreciated.<BR><BR>Thank You.<BR><BR>Arjun

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Note of historical cost profits and losses

<BR>Fixed assets are recorded either at historical costs or at revalued amounts. When a Fixed Asset is revalued the depreciation is on the revalued amount and if the asset is revalued upwards, the depreciation is more, (and vice-versa). <BR>This Note records the difference between the HISTORICAL cost Depreciation charge and the REVALUED cost Depreciation charge.<BR>This difference, (only if material), is then added to the Profit Before Tax amount on an upwards revaluation. I think the whole idea is to show how much depreciation is and how it has changed due to a Fixed Asset being revalued.<BR><BR>There is also the 'realisation of property revaluation gains on previous years', but my tutor said we don't need to know this. If it's a Gain then add it too.<BR><BR><BR>Hope this helps.<BR><BR>Good luck!<BR><BR>

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Note of historical cost profits and losses

Many Thanks