#registration_of_accounting_surplus_revision_of fixed assets,
Revaluation of fixed assets
Taken from standard number 11 and standard number 17
It is recorded in the balance sheet at the time of acquisition using the historical cost or fair value method.
Fixed asset ××
Cash/h payable ××
Note 1: According to Iranian Standard No. 11, tangible fixed assets can be reported in two ways after initial recognition.
1- Historical cost price after deducting any accumulated depreciation and accumulated depreciation
2- Re-evaluation
Note 2: After the completion of the revaluation process, all previous accumulated depreciation will be removed and the revaluation amount will replace the gross previous book amount of that asset.
Note 3: According to accounting standards, the revaluation period is 3 or 5 years. Of course, in the case of investments, the revaluation period is annual.
Note 4: According to the standards, whenever an item of non-monetary assets is evaluated, it is mandatory to re-evaluate all the items of the class to which the asset belongs. Examples of non-monetary asset classes are land, buildings, and machinery. and equipment, vehicles, furniture and fixtures, ships, airplanes, goodwill, royalties
Note 5: The amount that can be recorded for the revaluation of long-term non-monetary assets is the fair value of that asset on the revaluation date. If it is not possible to determine the fair value, the depreciated replacement price can be used, which is the current replacement price of a new asset. Deducting depreciation based on the new price and the period of use of that asset
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Group of accountants, auditors, Tabriz
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ
This post is written by Mahdi_kohsoltani