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Non-current assets – Acquisition, Depreciation and Subsequent
Recognition

4.1 Steps to account for a revaluation:

1. Restate asset cost to the revalued amount.

2. Remove any existing accumulated depreciation.

3. Transfer the increase in the cost account and the existing accumulated
depreciation to the revaluation reserve.

4. Recalculate current year's depreciation on the revalued amount if applicable.

4.2 To calculate revaluation gain/loss:

$000
Current value X
CV at date of revaluation (X)
––– Do not forget to recalculate
Revaluation gain/(loss) X/(X) depreciation on the revalued
––– amount.

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