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What are the advantages and disadvantages of revaluation assets?
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What is surplus on revaluation of asset?
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
What is the meaning of surplus on revaluation of fixed assets?
While in the process of revaluation of assets and liabilities, if the value of some assets increase more than the decrease in the value of some fixed assets then the difference of this increase and decrease if positive is called surplus on revaluation of fixed assets.
What are the advantages and disadvantages of the revaluation and cost models?
Advantages of cost model: relatively easy to use, and not so time consuming, figure cost is objective. Disadvantages: the price of an asset may not be a true reflection of the prices in the local area, etc., and information may not be that useful. Advantages of revaluation model: revaluation is more likely to provide decision-useful information to users, and profits determine the effectiveness of management. Disadvantages: it can be very costly and time-consuming, and subjectivity comes into important figures.
Advantages and disadvantages of corporation?
Advantages of corporation include protected assets and heightened credibility. Disadvantages include loss of a personal touch, and ongoing expenses.
Accounting treatment for surplus of revaluation of fixed assets?
a revaluation increase is credited to equity as a revaluation surplus, unless it's a reversal of a revaluation decrease, when it should be recognised as income.
What is the revaluation surplus?
Companies from time to time do the process of revaluating its assets and liabilities for many reasons like liquidation or selling business or any other reason. From the process of revaluation its assets and liabilities surplus or defecit generate. If there is revaluation surplus it means that assets of company has more appreciated then assets of the companies reduced in value.
What are the advantages and disadvantages of selling assets?
advantages of assets:- 1)old assets sales profits 2)that's not working old assets that's way sale 3)more profit and deprecation less disadvantages of assets 1)old is gold that's way loss 2) less profit and 3)selling the old loss of industries
Can dividend be declared out of revaluation of fixed assets justify?
No, Dividend Can't be declared out of revaluation of fixed assets. dividend may be declared by a company for that year out of the accumulated profits earned by it in previous years and transferred by it to the reserves, But not from revaluation reserve as its a unrealized profit...
What is the revaluation expense account?
Revaluation account is the account which is used to revaluate the assets and liabilities in business from time to time to find the actual value of assets and liabilities shown in balance sheet.
What are the advantages and disadvantages of fixed assets?
One of the advantages of fixed assets are that over the period of the fixed asset, the total burden of depreciation and repair costs are disproportional over the effective life of the asset. One of the disadvantages is that the depreciation is not a suitable method for assets like plants and machinery as depreciation is constant while the repairs on such assets will be heavier in later years.
What is revaluation of fixed assets?
Revaluation is the upward or downward adjustment in the value of a fixed asset to account for major changes in its fair market value. FASB does not allow upward revaluation.
Define capital reserve?
Capital reserve is the amount created to increase in market value of assets at the time of revaluation of assets.
