Page 105 - IC26 LIFE INSURANCE FINANCE
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Accounting treatment of revaluation under different situation:
When revaluation is made upward
Fixed Assets A/c Dr.
To Revaluation Reserve
When revaluation is made downward
P&L A/c Dr
To Fixed Assets
When revaluation is made upward subsequent to previous upward revaluation
Fixed Assets A/c Dr.
To Revaluation Reserve
When revaluation is made downward subsequent to previous upward revaluation
Revaluation Reserve A/c Dr. (To the extent of carrying amount of R.R)
P&L A/c Dr. (Balancing Figure)
To Fixed assets
When revaluation is made upward subsequent to previous downward revaluation
Fixed assets A/c Dr.
To P&L A/c (To the extent of previous downward revaluation)
To Revaluation Reserve (Balancing Figure)
When revaluation is made downward subsequent to previous downward revaluation
P& L A/c Dr.
To Fixed Assets
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