UK Presentation of Revaluations figures


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hello,
I have a query over the presentation of revaluation figures in our financial statements.
We have a buiding, original cost £30m with a UEL of 30 years. it is 20 years into ints life therefore NBV is (£30m- £30m/30x20) = £10m.
The building has been revalued as £45m.
I belive the accounting entries are
Dr FA Building £35m (45-10)
Cr Revaluation Reserve £35m (45-10)

However how is this adjustment presented in the FA note to the accounts which shows

Cost £30m
xxxx

Accumulated Depreciation £20m
xxxx

Net Book value £10m


Presumably there must be entries where the xxx's are?

Thanks in advance for any help with this.
Ian
 
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Triest123

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Feb 12, 2012
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hello,
I have a query over the presentation of revaluation figures in our financial statements.
We have a buiding, original cost £30m with a UEL of 30 years. it is 20 years into ints life therefore NBV is (£30m- £30m/30x20) = £10m.
The building has been revalued as £45m.
I belive the accounting entries are
Dr FA Building £35m (45-10)
Cr Revaluation Reserve £35m (45-10)

However how is this adjustment presented in the FA note to the accounts which shows

Cost £30m
xxxx

Accumulated Depreciation £20m
xxxx

Net Book value £10m


Presumably there must be entries where the xxx's are?

Thanks in advance for any help with this.
Ian
=> The entry should be :
Dr FA Building £15
Dr Accum. Depn £20
Cr Revaluation Reserve £35



In the FA note to the accounts which shows

FA building
Opening bal (at cost) £30m
Revaluation for the year £15m
Closing bal (at value) £45m

Accumulated Depreciation
Opening bal £20m
Revaluation for the year (£20m)
Closing bal £0

Net book value (opening bal) £10m
Net book value (closing bal) £45m
 
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