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Business Report

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Issue:

Business

 

Written by:

Vickie V

 

Date added:

November 30, 2010

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 954

 

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4012 times

 

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Report Issue 1 According to Australian Accounting Standards Board (AASB) 116 Para.30, “After recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses...
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In other words, the aim of revaluation is to be sure that the carrying amounts of assets are equal the fair value in the balance sheet. The principle of applying the revaluation model of increment is contained in Para 39 and 40 of AASB 116. “If and assent’s carrying amount is increased as a result of a revaluation, the increase shall be credited directly to equity under the heading of revaluation reserve…” It means that the increase is considered directly as equity, rather than appears in income statement...
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