How to #registration_accounting_surplus_renew_valuation_of_fixed_assets;
Revaluation of fixed assets derived from Standard No. 11 and Standard No. 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 items of the class to which the related asset belongs. Examples of non-monetary asset classes are land, buildings, 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):
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