4 - Upward Revaluation on Upward Revaluation Accounts (Special
Revaluation)
4 - Upward Revaluation
on Upward Revaluation Accounts (Special Revaluation)
To post this type of entry you shall need the following accounts from the
fixed asset register:
- to post to the debit side: Upward revaluation - Debit (e.g. 0401D)
- to post to the credit side:
- Upward revaluation - Credit (e.g. 0501K)
- Upward revaluation - Difference (e.g. 952K)
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To establish the appropriate carrying value and with this the
corresponding difference from the new value it is MANDATORY that you prior
to the entry of upward revaluation calculate depreciation to the date of
upward revaluation. |
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If downward revaluation has been used with fixed asset prior
to the upward revaluation (see type 5 - Downward
revaluation on downward revaluation accounts), you have to first reverse
the downward revaluation (see type 8 - Reversal of
downward revaluation). |
Upward revaluation is allowed by SRS 2002
yet this procedure is not obligatory.
Depreciation of such upward revaluation (see 22 -
Depreciation on upward revaluation accounts) means gradual decrease of the
revaluated capital adjustment incurred here (e.g, account 952).
Example: