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This document discusses property, plant, and equipment accounting. It covers revaluation methods, where increasing or decreasing a liability is recorded through profit/loss or revaluation surplus. It also discusses revaluation accounting method 1, where accumulated depreciation is eliminated against the gross asset amount and the net is restated to the revalued amount, resetting accumulated depreciation to zero. This method is often used when buildings are revalued to their market value. Reference links on accounting for property, plant and equipment are also provided.
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- 1. PS SIKHOSANA LESSON BASED ON PROPERTY PLANT AND EQUIPMENT THIS IS A MISHUPS OF DIFFERENT POWERPOINTS.
- 2. INTRODUCTION TO PROPERTY PLANT AND EQUIPMENT GRADE 11
- 21. REVALUATION METHOD Revaluation model: Increase in Liability Dr. Profit or Loss OR Dr. Revaluation surplus (to the extent a credit balance exist in the revaluation surplus in respect of that asset) Cr. Liability Decrease in Liability Dr. Liability Cr. Revaluation surplus OR Cr. Profit or Loss (to the extent previous decrease in value of asset is recognised in Profit or Loss) If the decrease in the liability exceeds the carrying amount (as per cost mod
- 22. Revaluation: the Accounting Method 1 Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of asset. Result: • The asset is stated at revalued amount; and • Accumulated depreciation reset to zero. This method is often used for buildings that are revalued to their market value.
- 30. REFERENCE LIST http://www.slideshare.net/MHMPC/webinar-slides-international-accounting- for-property-plant-and-equipment?qid=2a1145b7-5d3d-42fc-b836- 6a689b6bdc06&v=qf1&b=&from_search=2 http://www.slideshare.net/mudasserjavedhassan/depreciation-accounting- 31602261 Wiley. J ,Basic principles of accounting. 1976.Wiley &son publishers. http://www.slideshare.net/saraibrahim16121/ch01-15444800 http://www.slideshare.net/Chapter8254ICWAI/property-plant-and- equipment-ias-16 http://www.slideshare.net/swagato/depreciation-2-presentation