Subsequent Measurement of PPE

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..... Model - After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment losses. i.e., - Cost XXX Less: Accumulated Depreciation (XX) Less: Accumulated Impairment Loss (XX) .....

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..... : SUBSEQUENT Accumulated Impairment Loss (XX) Net Carrying Amount XXX Frequency of Revaluation - The frequency of revaluations depends upon the changes in fair values of the items of property, plant and equipment being revalued. When the fair value of a revalued asset differs materially from its carrying amount, a fur .....

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..... icles; furniture and fixtures; office equipment; and bearer plants. When PPE are revalued for the FIRST TIME: If it is upward revaluation Revaluation gain should be recognized in Other Comprehensive Income (OCI) and accumulated reserve should be presented in Reserves and Surplus PPE A/c Dr. XXX To revaluation surplus A/c (OCI) XXX If it is downward revalu .....

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..... time also downward revaluation Further decrease should be transferred to P L A/c. Next tim upward revaluation Credit the P L A/c to the extent it was charged to P L in earlier revaluation and remaining balance should be credited to OCI and accumulated in equity under the heading Reserves and Surplus . Note- The effect of taxes on revaluation are recognized and disclosed as Ind AS 1 .....

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