3 - Upward Revaluation on Acquisition Accounts (General Revaluation)

3 - Upward Revaluation on Acquisition Accounts (General Revaluation)

To post this type of entry you shall need the following accounts from the fixed asset register and post value adjustment panel:

• to post to the debit side: Acquisition - Debit (e.g. 0210 D)
• to post to the credit side: 
  • Depreciation - Credit (e.g. 0350 C)
  • The difference by general upward revaluation  (e.g. temporary account of class 5, 5001 C) - The established difference is posted to the Difference by general upward revaluation account that you can select prior to the posting of disposal in the  post value adjustment panel.

Iz fixed asset register:

From the post value adjustment panel:

Here you deal with the so called general revaluation of fixed assets. The standards for some cases allows you (is not binding) to revaluate fixed asset. Let us take for example acquisition of fixed assets at home or abroad should the debt to supplier will not be paid to the year-end (e.g a loan). The company may in such a case disclose the arranged revaluation of debt as increased original purchase value. It is thus made a base for depreciation calculation that shall be disclosed as cost (for example see Upward revaluation of purchase value (and of value adjustment)).

A similar example occurs with the decrease of already calculated revaluated value adjustment except that the values are disclosed as negative. In accordance with SRS 1.15 "Subsequent expenditure on an item of property, plant and equipment increases its cost if it increases its future economic benefits in excess of the originally assessed; the subsequent expenditure enabling the extension of useful life of the asset initially reduces the accumulated depreciation. The extension of useful life of the asset initially reduces the accumulated depreciation. The extension of useful life of an item of property, plant and equipment is the extension of the originally assessed period over which the asset is depreciated."  For such an example see Decreasing of accumulated depreciation.

Depreciation of such upward revaluation represents depreciation cost that is disclosed on accounts of group 43 (see 21 - Depreciation on acquisition accounts).

This type of change if handling carefully may also be used in case when you have to decrease the purchase value (together with value adjustment) of fixed asset for which you have already calculated depreciation because you obtained the supplier's credit note subsequently. If you have recorded downward and upward revaluation with such fixed asset prior to the credit note, they are recalculated on the basis of original purchase value (and value adjustments) and can be irregular after the recording of the credit note. Depreciation calculation on upward and downward revaluation accounts will be irregular because of this.

In case of recording of supplier's credit note you should ensure that with such fixed asset there is no other upward and downward revaluation recorded.

Examples:

• Upward revaluation of purchase value (and of value adjustment)
• Decrease of Accumulated Depreciation