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Non-current assets: disposal and revaluation

A three-step approach to recording the revaluation can be used as follows:

 Restate the asset cost to the revalued amount and

transfer the increase to the revaluation surplus
Step 1 account.

 Remove any accumulated depreciation at the

revaluation date and transfer to the revaluation surplus
Step 2 account.

 Recalculate the current year depreciation charge on

Step 3 the revalued amount over the remaining useful life.

Tutor notes guidance – discussion points

Take students through Illustration 1 and 2 from Chapter 8 of the Study Text.

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