Page 122 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 8

A three-step approach to recording a 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.

Note that, if non-current assets are revalued, then all other non-current assets of the
same class must also be revalued to ensure a consistent accounting treatment e.g.
all land and buildings owned (rather than only some).

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