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...
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
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.
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.
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.
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.
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
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.
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.
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.
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.
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.
Capital reserve is the amount created to increase in market value of assets at the time of revaluation of assets.
revalutation account is opened to record the revaluation of assets and liabilities.the profit or loss arising because of revaluation is transfered to old partners capital account in their old profit sharing ratio. Companies from time to time check the values of assets and liabilities for there book values and if there is some changes in book values of assets and liabilities that revaluations are made through revaluation account which are later charge to profit and loss account or transferred to reserve account.
No. Dividend payout essentially means that the company pays money to all its shareholders and hence its assets will effectively decrease.
stock dividends what impact on total assets
A plant asset is an asset such as land, buildings, and machinery that will be useful for more than one year and is used to help produce revenues for a business. Plant assets are also known as fixed assets. Revaluation of plant/fixed assets is the process of increasing or decreasing their carrying value in the event of major changes in the fair market value of the assets.
The actual value of assets may be different from their book value. So revaluation account is prepared at the time of admission to record any increase or decrease in the value of assets.